Pensions timebomb - Crisis looms due to funds free-fall

The message emanating from the Society of Actuaries of Ireland yesterday is a salutary warning that the future looks anything but rosy for those with hopes of early retirement if they are depending on a Defined Contribution pension plan.

Excluding the public sector, almost half of all workers are in contribution schemes and they have seen the value of their funds fall over the past three years as equity markets plummeted. Last year, the average Irish pension fund fell by 19%.

The stark fact is thousands of people will be forced to exist on pensions worth less than half their original values unless contributions to schemes are dramatically increased.