IRELAND - Managed pension fund values fell lower than where they were the end of 2005 last month with €15bn ($23.8bn) being wiped out in the year to date, according to Rubicon Investment Consulting.
Jerry Moriarty, director of policy, Irish Association of Pension Funds (IAPF) said: "Clearly pension funds are starting to see the effect of the global uncertainty and slowdown.
"This is no different in Ireland than other economies and the outlook for the Irish economy has worsened in recent months," Moriarty added.
Rubicon said two severe equity bear markets in the last ten years had meant these managed pension funds had returned an average 2.8%, a whole percentage point below inflation currently sitting at 3.8%.
Over the past 12 months, funds have lost 20% of their value and only made positive gains of 1.4% per annum over the past three years.
However, Rubicon said: "It is worth noting that members of defined benefit schemes and younger members of defined contribution schemes should not get overly worried about short or medium term declines in equity markets.
The consultants warned: "However, older members of defined contribution schemes need to ensure that they adopt a lower risk investment strategy as they approach retirement age."
Moriarty concluded: "The current level of uncertainty will be of concern to trustees and members alike and they will be carefully considering their investment strategies."
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