Why your pension fund suddenly looks a lot worse
Projections of retirement income have changed due to shifts in market trends
Before you panic about where all your savings have gone, they haven’t. What has changed is not how much you’ve saved but the projection about how that will grow over time. File photograph: iStock
It’s the one section of an annual pension statement that people invested in defined-contribution pensions or PRSAs (personal retirement savings accounts) may look at: how much income your retirement savings are going to offer you in retirement.
If you have checked yours of late, however, you may have got bit of a fright. A pension that last year was promising an annual income of €30,000 once you turn 65 or 66 may now be projecting income of only €20,000. That’s a swingeing cut at a time when your ability to work to make up the difference has diminished.