Retiring workers may be able to defer pensions

RETIRING workers with pensions that have slumped in value due to the stock market collapse may be able to defer cashing in their investments until the market recovers.

Minister for Social and Family Affairs Mary Hanafin said she was in discussion with the Department of Finance about ways of helping workers stuck with devalued annuity investments and the department was “very sympathetic” to the idea of creating a deferral mechanism.

“There is always a risk [with annuities], but it must be really soul-destroying for someone to put all their money all the years of their working life into an investment and, at the very worst time, to know they are stuck with it,” she said.