Pension savers nearing retirement are having to make large top-ups to their schemes or defer taking benefits, as the recent market falls have wiped more than a third off the value of some funds in just three months.

Advisers say the worst hit are those approaching retirement who have not yet switched out of equities in favour of more secure investments. They believe investors who have remained heavily invested in equities may have seen the value of their pension fund drop 35-40 per cent since September.