Mature pension funds will not survive another financial crisis

Pension schemes have been severely affected by the recent financial crisis. But, according to Cardano’s Theo Kocken and Joeri Potters, the prognosis for recovery is dependent on the maturity of the individual schemes – unless there is widespread systemic reform

The recent financial crisis has wiped billions of dollars off the value of pension schemes, but the long-term outlook for these funds is linked closely to their maturity. This is because a major financial crisis is much less harmful to a young pension system than a minor crisis is to a pension system already in the payout phase.

In the past decade, pension funds have learned to their cost that contributions are no longer a valid control instrument while in the future they will find out that