Building Better Retirement Systems in the Wake of the Global Pandemic

Abstract

In the wake of the global pandemic known as COVID-19, retirees, along with those hoping to retire someday, have been shocked into a new awareness of the need for better risk management tools to handle longevity and aging. This paper offers an assessment of the status quo prior to the spread of the coronavirus, evaluates how retirement systems are faring in the wake of the shock. Next we examine insurance and financial market products that may render retirement systems more resilient for the world’s aging population. Finally, potential roles for policymakers are evaluated.

Keywords: COVID-19, coronavirus, pandemic, retirement planning, retirement systems, pensions, annuities, financial literacy, impact of low returns, insurance, financial literacy

JEL Classification: G23, G5, J32, H55, H75