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Will Covid second wave hit my pension?

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'For most people, it is likely that part of their post-retirement pension fund is invested in the stock market' (stock image)

'For most people, it is likely that part of their post-retirement pension fund is invested in the stock market' (stock image)

'For most people, it is likely that part of their post-retirement pension fund is invested in the stock market' (stock image)

Q: I'm due to retire in the next few months and while the recent stock market volatility has eased, I'm worried about what might happen to my pension if there's a second wave of Covid-19. If that comes in the winter, I will have retired by then. What would be the biggest risks of any stock market volatility prompted by a second wave of the virus to those who have retired and are in receipt of their pensions? Can I do anything to protect my pension in retirement? Eddie, Dublin

A: You don't say if you are a member of a defined benefit (DB) scheme or a defined contribution (DC) scheme -and if DC, whether or not you are planning to opt for an annuity (a guaranteed pension for life) or an Approved Retirement Fund (ARF - a personal retirement fund where you keep your money invested after retirement and you retain ownership) when you retire.

If you are a member of a DB pension scheme or are in receipt of a guaranteed pension annuity, your pension income is normally guaranteed by the pension scheme or annuity provider - so you are unlikely to be impacted by any stock market volatility.