24 October 2008

As Britain faces an unprecedented financial crisis that has seen a dramatic fall in house prices and the enforced nationalisation of high street banks, new figures revealed today by Brewin Dolphin, the largest independent private client portfolio manager in the UK, show that 18m adults (nearly half the adult population) do not save in a pension and that 7 million adults plan to rely on their property to fund their retirement.

The research can also reveal that:

• 47 % of Britain’s adult population  (18 million adults) have opted not to fund a private pension scheme;
• And 11m working adults (41% of the adult working population) do not currently have a pension scheme.

Worryingly, nearly a quarter of UK homeowners (7 million) are expecting to rely on equity from their property to provide for their retirement. The research also shows that 4 million workers aged 35-54 are placing their faith in the volatile property market to generate funds for their retirement rather than investing in a pension.

Charlotte Black, Director of Corporate Affairs at Brewin Dolphin commented: 
“Millions of people could be in for a shock if they are going to rely on using their home to fund retirement. The recent huge drop in house prices could result in those 7 million adults seeing thousands of pounds wiped from the value of their property with serious implications for their retirement plans.

“Housing is not the gilt edged investment many believe it to be.  The widely held view that housing prices outperform equities over the long term simply isn’t true.  While the average real rate of return of property was 270% over the past 20 years , the rate for equities was far  higher at 470%.*

“The data revealed by the survey should act as a warning - to the millions of people who are planning to rely on their property to fund retirement – that they should diversify their investments beyond the property market and seek specialist advice about starting a pension – low points in stockmarket cycles can be a good time to invest in pensions, when you can buy more shares for less and take a long term view. Brewin Dolphin has qualified pensions advisers in the majority of its 39 offices around the UK.”

- Ends -

The opinions expressed in this document are not the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd. accepts liability for any direct or consequential loss arising from the use of this document or its contents.

The value of your investment or any income from it may fall and you may get back less than you invested. Past performance is not a guide to future performance. If you are in any doubt concerning the suitability of any of the investments mentioned you should seek the advice of a qualified investment adviser.

Notes to Editors:

2063 adults were interviewed online by research company TNS. Fieldwork was conducted between 12th and 22nd September.
The sample has been weighted to represent the adult population of Great Britain aged 16-64.
Population figures are taken from the National Readership Survey 2003.
State pension is excluded from this survey, but all other pensions are include (occupational etc.)

*UK Halifax price index (seasonally adjusted) FTSE 100 total return index – 16.10.1988 to 16.10.2008