Irish Association of Pension Funds warns about 'riskier' pension choices

Low interest rates shouldn’t encourage pension investors to chase riskier investments that could leave them with significant losses down the road, a pension representative body has warned.

The Irish Association of Pension Funds (IAPF) is fearful falling bond yields could entice pension funds and defined benefit contribution members to look for more volatile and riskier investment strategies that could leave them with losses should markets take a turn for the worse.

IAPF chief executive, Jerry Moriarty said the warning echoed that of the OECD earlier in the week when it warned that the current, low-growth, low interest rate environment, was making it difficult to earn the returns necessary to reach adequate pension levels.