80% 'Unhappy with Pension Savings'

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80% 'Unhappy with Pension Savings'

Press Association

March 16, 2004

Eight out of 10 Britons are unhappy with their pension pot and intend to take action to boost their retirement income, research claimed today.

People are increasingly relying on unlocking money from their property to provide them with a better standard of living during retirement, according to Birmingham Midshires.

Around 16% of people plan to move to a smaller home when they retire to cash in on soaring house prices, while 15% say they will release equity from their property.

A further 12% of people plan either to sell their home or rent it out, and live abroad on the proceeds.

17% of people are considering moving jobs to get a higher wage or better benefits to boost their retirement income, while 13% of people say they will cut back on luxuries to enable them to save more money into their pension.

Just 1% of people say they would seriously consider moving in with their children to make their retirement income go further, and only 5% of people said they were prepared to live on the poverty line and take no action.

Tim Hague, head of savings and investments at Birmingham Midshires, said: "People are searching for ways to give their retirement savings a boost, which is great news.

"But our research has shown an increasing number of people see their home as a 'get out of jail free' card.

"Equity release schemes and downsizing to smaller homes are sensible options for some people, but no one should rely upon their home.

"Houses are not immune from price fluctuations and people should not have all their eggs in one basket."