Download 13.6 million uk adults without a pension

13.6 MILLION UK ADULTS WITHOUT A PENSION
- Increasing number of men without pension provision
- 13% rely on their property as their pension
London, 11th August 2011 - A staggering 38% of British adults (13.6 million) do not have
a pension, according to new research from Baring Asset Management (Barings), the
international investment management firm.1 Equally alarming is the fact that 1.4 million
people who are 55 and older do not have a pension in place.
While it is not wholly surprising that a high proportion of people aged 18-24 do not have a
pension, given other pressing demands on their income such as clearing debt and getting on
the property ladder, it is worrying to learn that almost half of 25-34 year olds (47%) have not
started saving into a pension – an age that is considered critical in terms of establishing the
foundations of a pension fund.
The findings also show that an increasing number of men do not have any pension provision,
as 30% are currently without compared to 28% in 2010. In contrast, more women this year
have a pension as the number without has fallen from 47% in 2010 to 44% in 2011.
Age
18-24
25-34
35-44
45-54
55-64
65+
Percentage of people who do not have a pension
69%
47%
27%
30%
26%
7%
Source: Barings
The study, conducted annually amongst non-retired GB adults, also reveals that people are
increasingly reliant on their property to fund their retirement. This year, 13% of people said
their property is their pension, compared to 12% in 2010 and just 8% in 2009, which is a
cause for concern given property prices have yet to recover fully from the lows during the
recession.
Women are more dependent on property than men with 14% saying their property is their
pension compared to 12% of men. In fact, women are increasingly relying on their properties
as only 9% said it was their pension in 2010. Furthermore, 16% of those aged 65+ that are
still in employment will rely on their property to fund their retirement.
Looking at the specifics of those who do have a pension, 52% (11.7 million) of working people
have a final salary pension provision in place. Marginally more women (53%) have a final
salary pension than men (51%). This compares to one in three (6.6 million) who are in a
defined contribution arrangement.
Marino Valensise, Chief Investment Officer, Barings comments, “Having such a large
number of people without any form of pension provision is very worrying. It is highly likely that
for those approaching retirement age, continuing to work indefinitely will be mandatory given
they have no other income streams. At the same time, it is concerning to learn that only half
of people in their late twenties and early thirties are contributing into a pension scheme. Kick
starting a pension around this time is absolutely paramount given the impact it has on the end
sum. Investing into a pension little and often is a much better approach than not at all.”
ENDS
Notes to editors
1 Research conducted online by ICM research on behalf of Baring Asset Management of 1589
non-retired GB adults between 1st and 3rd July 2011.
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Baring Asset Management is an international investment management firm with investment
skills, clients and business locations spanning world markets. Our investment competency
encompasses developed and emerging market equity, fixed income and multi-asset portfolio
management services offered to institutions, retail investors and private individuals.
Worldwide clients include public and corporate pension plans, government agencies, financial
institutions, charitable organisations, mutual funds and private individuals.
Baring Asset Management is part of the MassMutual Financial Group, a global, diversified
financial services organization. Massachusetts Mutual Life Insurance Company (MassMutual) is
one of the largest life insurance businesses in the USA.
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Baring Asset Management.
This Press release includes and is based on forward-looking information and statements that
are subject to risks and uncertainties that could cause actual results to differ. Such forwardlooking information and statements are based on current expectations, estimates and
projections. Important factors that could cause actual results to differ materially from those
expectations include, among others, interest rates and fluctuations in currency exchange rates.
Although Baring Asset Management believes that its expectations and the information in this
press release were based upon reasonable assumptions at the time when they were made, it
can give no assurance that those expectations will be achieved or that the actual results will be
as set out in this press release. Barings undertakes no obligation to publicly update or revise
any forward-looking information or statements in the press release.
This year, Baring Asset Management is proud to support The Indee Rose Trust, a charity
providing vital help and support for children and their families who have been diagnosed with a
brain or spinal tumour. www.indeerosetrust.org. Registered charity number 1132471.
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Citigate Dewe Rogerson
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