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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. FOR FURTHER ENQUIRIES: Baring Asset Management Steve Ainger – PR Manager Tel: +44 (0) 20 7214 1766 Citigate Dewe Rogerson Jo Skinner Sophie Woodcock Tel: +44 (0) 20 7282 1092 Tel: +44 (0) 20 7282 1072 Important information - Baring Asset Management www.barings.com Follow us on at MailScanner has detected a possible fraud attempt from "www.baringsemails.com" claiming to be www.twitter.com/Barings 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. This document is not an offer to sell or an invitation to apply for any product or service of 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. Version 03/2010 Laurie Eldridge, Account Executive Citigate Dewe Rogerson 3 London Wall Buildings, London, EC2M 5SY Direct Line: 020 7282 1057 Switchboard: 020 7638 9571 [email protected]