Effect of coronavirus on your pension

The coronavirus and low oil prices are affecting the global economy. Saudi Arabia's decision to drastically lower its oil prices and the increasingly spreading coronavirus have a negative effect on the global economy. World trade, supply chains and tourism are suffering from the quarantine measures taken by various countries due to the coronavirus outbreak.

OECD lowers growth prognosis for the global economy
The global economy is hammered by the effects of the coronavirus. The OECD is expecting the global economy to grow by 2.4% due to the virus, which is 0.5% less than previous growth estimates. It is the lowest growth rate since the financial crisis of 2008. A number of countries might even have to face economic contraction.

Central banks are intervening
A number of Asian central banks, including the Chinese central bank, have increased their monetary policy to support the economy. Also, the US central bank (‘Federal Reserve’ or ‘Fed’) lowered its interest rate to try and support the economy. Lower interest rates are good for bond investors. It may also have a positive effect on shares because lower interest rates are good for companies. The question is, however, how effective the lowering of interests rate will be.

Uncertainty is part of investing
Short-term fluctuations are not a concern, as we, as a pension fund, make long-term investments.

Were you employed by Shell on or after the 1st of July 2013 or are you participating in the Shell net pension scheme, then it is important for you to be aware that you are participating in an SNPS pension scheme, where investments and interest fluctuations are at the participant's (your) risk. Therefore, regularly check your value overview at my-Shell pension in My archive.

If you were already employed by Shell before the 1st of July 2013, you are participating in the SSPF pension scheme. The financial effects of the coronavirus and the decreasing interest rates may then be projected in the SSPF funding ratio . The funding ratio is the standard maintained and shows the ratio between the pension fund’s liabilities on the one hand and the corresponding assets on the other hand. Despite the changes in the funding ratio, your entitlement or benefit with SSPF will remain the same. View the current balance of your pension at my-Shell pension.