People planning to retire within ten years should start to reduce the risk profile of their pensions, the head of communications at an independent financial adviser has stated.

Patrick Connolly at AWD Chase de Vere, suggested that risk can be limited by taking steps such as moving out of equities and investing in safer options such as fixed interest and cash.

He explained that if financial sums are lost just prior to retirement, there is no time to make up any losses.

"Those who have incurred significant losses shortly before retirement often have a stark choice between accepting a lower income in retirement or working for longer," he added.

The value of self-administered pension funds' assets fell in 2008 to £928 billion, according to the Office for National Statistics, in comparison to £1,093 billion in 2007.

Between 2006 and 2008 the total income from this type of fund fell from £71.8 billion to £58.6 billion, the largest reduction since the start of the series in 1984, the figures also showed.