Eighty per cent of Britons are unhappy with their retirement pot and intend to take action to boost their pension – with many focused on property values to secure their retirement - according to research today from Birmingham Midshires ‘Saving Britain 2004’ Campaign.

While the study shows Britons are facing their retirement concerns, it reveals many people are relying on the value of their property to help support them in retirement.

• Moving abroad – More than one in ten people (12%) plan to cash in the value of their home in a buoyant market and either sell up or rent out to fund a new lifestyle in the sun (a 2 percentage point increase on figures released six months ago). 17 per cent of 50-somethings plan this course of action.
• Equity release – One in six people (15%) are planning to release equity from their home (a rise of 3 percentage points from six months ago). This is a more popular solution with men, 18 per cent will release their home’s equity, compared to just 13 per cent of women.
• Downsizing - Bungalow builders will be pleased that 16 per cent of Britons say they will move to a smaller home when they retire to cash in on the value of their property and to manage bills and reduce costs. (The proportion of people stood at just 13 per cent six months ago).

Birmingham Midshires’ ‘Saving Britain Campaign’ aims to raise awareness of the serious financial issues affecting consumers and to identify the right financial solutions that will help Britons to manage their money better. Birmingham Midshires asked a GB representative sample of 2,000 people whether they had suffered a loss in their savings and what actions, if any, people were taking to help them save.

Other key findings include:

• Boost their salary

The shortfall in the public’s retirement savings could also see job migration as 17 per cent of people say they are considering a job move in search of a higher wage or a stronger benefit scheme to fund their future retirement.

The need to save for the future could encourage university leavers towards specific (higher earning) roles as financial issues dictate their priorities – with 45 per cent of teenagers surveyed claiming they would pursue better paid jobs and 40 per cent in their twenties.

• Cut back on outgoings

13 per cent of Britons plan to cut back on luxuries throughout life to boost their retirement fund. Men are more likely to forfeit the luxuries (20%), compared to just 10 per cent of women.

• Boomerang Generation

While there is a growing trend of people returning to live with their parents after university, just one per cent of the population is seriously planning to live with their offspring in retirement. Similarly, only one per cent of people are prepared to take money from their children in retirement.

However, although not popular plans - these two options will become increasingly common as people struggle in retirement and become dependent on family for support.

• Survive on the bare minimum

Just five per cent of Britons are prepared to live on the poverty line in retirement – obviously wanting to take the appropriate action now. However, alarmingly one in ten adults over 60 (10%) now accepts this is a reality - a harsh warning to younger generations.

Tim Hague, Head of Savings and Investments at Birmingham Midshires, says:

“People are searching for ways to give their retirement savings a boost – this is great news. But our research has shown an increasing number of people see their home as a ‘get 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.”

“We would advise people to regularly review their retirement savings. Start to save as early as possible – and we appreciate this is not always easy.”