Serious drop in value of pensions predicted

IRISH workers face serious falls in the future value of their pensions, as 40% of defined benefit plans face employer cutbacks.

An extensive review covering both defined benefit and defined contribution pensions warned that “incomes from private sector pension schemes can be expected to be lower in the future”.

In the case of defined benefit plans, two thirds of employers have closed their scheme to new entrants and nearly half of employers are considering imposing a salary freeze or cap.