Pandemic’s impact raises big questions about DB pension benefits

The UK’s hugely successful vaccination programme has ensured that for the first time in months, the prospect of a relatively normal form of post-pandemic life emerging in the foreseeable future finally appears realistic. Reports in late February suggested that the nation’s inoculation drive could be extended to people aged as young as 40 within a few weeks. Light has, it seems, been spotted at the end of a very long, pitch-dark tunnel.   

However, optimistic suggestions that the return to a form of normality could provide the catalyst for a colossal consumer spending spree were recently reined in by the Bank of England. Granted, the Bank concurred that the level of ‘excess savings’ squirrelled away by UK households at the end of November 2020 stood at £125billion; it also suggested that this figure could double by the summer. Nevertheless, the Bank believes that only around 5% of the cash currently swishing around in low-yielding bank accounts will be spent. Bad news for businesses anticipating a ‘wall of money’ to fall in on them and provide the economy with a boost of historic proportions.  

STM Group plc (LON:STM) is a multi-jurisdictional financial services group listed on the Alternative Investment Market of the London Stock Exchange. The Group was formed as a strategic investment company specifically to build a leading financial services group originally operating in the in

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