Pension crisis can still be averted

IT is not too late to avert a full-scale pensions crisis, Goodbody Stockbrokers has said, but any recovery depends on swift action by the Government in the coming months.

The firm also urged the Government not to increase the mandatory drawdown on Approved Retirement Funds (ARFs) past the current 5% mark; to reinvigorate pension savings.

ARFs are being used more as retirement income and the annual mandatory drawdown percentage of these funds was increased, last year, from 3% to 5%. Although not confirmed, speculation has been mounting that the drawdown percentage is likely to rise in the coming months. This, according to Brendan McGinn — director of pensions at Goodbody Stockbrokers — would be “detrimental”.