U.K. groups working together to help participants during virus pandemic

Seven U.K. retirement savings watchdogs collaborated on a guide to demystify the most common dilemmas faced by plan participants during the coronavirus pandemic.

In an effort to clarify the impact of the COVID-19 crisis on participants' retirement savings, the £32 billion ($38.7 billion) Pension Protection Fund, London; U.K. Department for Work and Pensions; Financial Services Compensation Scheme, which provides compensation if financial firms fail; Money and Pensions Service, which develops strategies to improve people's financial acumen; The Pensions Regulator; Financial Conduct Authority; and the Pensions Ombudsman developed a guide to help retirees make better decisions during the pandemic.

The guide alerts plan participants to fraud and consequences of accessing retirement savings early during the crisis.

To help participants avoid fraud or reducing their retirement savings through untimely financial decisions, the watchdogs are encouraging participants to verify with independent organizations the information they are receiving from providers. The guide also provides information about retirement benefit protection with the PPF, the lifeboat fund for the defined benefit plans of U.K. insolvent companies, in case the pandemic puts participants' employers out of business."Keeping people informed is vital, and I welcome the coordinated approach being taken by the different pension bodies to assist anyone who needs advice or guidance," said Guy Opperman, the U.K. minister for pensions and financial inclusion, in a news release.

Oliver Morley, CEO of the PPF added in the news release: "There are over 10 million members of corporate defined benefit schemes across the U.K. who may not be aware of our role in protecting them should their scheme or sponsoring employer be unable to pay their pensions in the future."