YouGov research commissioned by Deloitte has confirmed that the UK is on the brink of a pensions crisis.  Only 23% believe they will be able to maintain a comfortable standard of living during their retirement.  The key findings of the research are:

• Aside from the state pensions schemes, 52% of women surveyed have not made any additional financial arrangements compared with 40% of men
• 54% of people in Scotland have not made any additional financial arrangements compared with a 46% national average
• 45% of those surveyed would consider an equity release mortgage product to fund their retirement.

Nick Sandall, Head of Retail Banking at Deloitte, commented: “The survey confirms that the UK has a culture of not preparing financially for retirement.  We are predicting huge growth in the equity release mortgage market as people look to their homes to fill the gap in their financial planning.  The equity release market is reasonably immature at the moment.  We expect to see big changes in this space as lenders look to meet the future demand and rise to the regulatory challenge set by the FSA.”

Chris Samson, Senior Manager in the Financial Services practice at Deloitte added:
“The statistics clearly show the demand for further product development as well as highlighting the opportunities to address the divergence between the sexes and the regions through tailored products and sales strategies.”

Ends

Notes to editor
Research was conducted online between 17th and 19th May.  YouGov interviewed a representative sample of 2245 18+ adults.  Results were weighted to be representative of the British population.

Based on Office of National Statistics figures, the key findings of the survey can be equated to:

• Only 6.5 million people (23%) believe they will be able to maintain a comfortable standard of living during their retirement
• Aside from the state pensions schemes, 6.7 million women (52%) have not made any additional financial arrangements compared with 40% of men
• 23 million (45%) adults would consider an equity release mortgage product to fund their retirement.

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP.

Deloitte & Touche LLP is the UK's fastest growing major business advisory firm based in 21 UK locations, with over 10,000 staff nationwide and fee income of £1,246 million in 2003/2004. It is a member firm of Deloitte Touche Tohmatsu, a leading professional services organisation, delivering world class audit, tax, consulting and corporate finance services, with around 120,000 people in over 140 countries. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity.

Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.

The information contained in this press release is correct at the time of going to press.