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."
Yesterday IRELAND - Hewitt said its Irish managed Fund Index (IMFI) was down 21% over the last 12 months (www.globalpensions.com 2 July).
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.