Warning to pension contributors

MEMBERS of defined contribution schemes could be sitting on a potential pensions timebomb and are largely unaware of it, a conference heard yesterday.

Raymond McKenna of KPMG People Strategies said the average defined contribution pensions member needs significantly to increase contributions if they are to secure an adequate income in retirement.

“Figures show the average contribution by employees and employers to a defined contribution scheme is about 10% of income, Mr McKenna told the Irish Association of Pension Funds conference yesterday.