Two thirds of pension schemes in the red - watchdog warns
Two thirds of defined benefit and contribution schemes are in deficit while fund trustees are exposing members to significant risks of further losses, the Irish Pension Board has warned.
Board chief executive Brendan Kennedy said while it has been more than three years since stock markets crashed amidst the global financial crisis, there has been no noticeable reduction by Irish pension schemes in their exposure to stocks.
According to the Irish Pension Board’s annual report, the main reason people will have less of a retirement pot are risky investments and failure to manage them.
The board has relaxed a deadline for pension schemes to achieve minimum funding standards.
Mr Kennedy said the board planned to set a revised deadline as quickly as possible.
The body's report also points to a fall-off in the numbers saving for their retirement during 2010.
The board is concerned about this development because of the importance of personal saving to provide for retirement in addition to the state pension.
The report also said the board was continuing to investigate a 'substantial' number of cases in the construction sectors, where workers' contributions were not passed on by their employer to the Construction Workers' Pension Scheme.