Gloomy outlook on our pensions
PEOPLE in the private sector who are due to retire in the next few years have good reason to be concerned. At the very least, they should be aware of the warnings sounded yesterday by the chairman of the Pensions Board.
Tiernan O'Mahoney reported that three out of every four defined benefit schemes, the sort that are considered the most secure, are experiencing difficulties and many workers on the far less generous defined contribution pensions, who have no guarantees of what they will receive when they finish working, face reduced retirement incomes.
It was deeply alarming to hear the Pensions Board chief executive, Brendan Kennedy, say that huge investment risks are still being taken. The lessons have not been learned, it seems, and reckless investment has led to serious shortfalls.