Prudential Reveals Equity Mix Remains Top Choice For Pension Investments
Released
on: July 29, 2009, 6:11 am
Author: Jonathan Akerman
Industry: Financial
Prudential
has reported that more than one in three people retiring within
the next 10 years say they would prefer their pension to be invested
partly in the stock market and the remainder in other types of
investments, according to new research*.
The
nationwide study shows that consumer confidence in the stock market
continues despite recent market and economic upheavals.
Prudential
asked 1002 men aged 55 to 64 and women aged 50 to 59 who have
a pension
how they would want their pension
fund invested if they could choose:
-
35% said partly in the stock market and the remainder in other
investments (40% men, 29% women)
- 29% said only in cash or very low-risk investments (29% men,
30% women)
- 22% said they did not know (18% men, 28% women)
Since
the FTSE 100 index of leading shares hit a five-year low of 3530
in the week of 2nd March this year, it has climbed back up. Currently
the FTSE is at 4615 w/c 27 July 2009, compared to 4413 w/c 26
July 2008 so is 202 points higher than this time five years ago.**
Andy
Brown, Prudential's director of investment funds, said: "Despite
immense volatility in the stock market over the past year or so,
there is still evidence of consumer confidence in equities to
deliver a promising return for pension investments over the long-term.
"What
is certain as well is that many people have been spooked by the
recent economic maelstrom and, unsurprisingly, would prefer their
pension to be in cash or lower risk investments as they near retirement.
"We've
seen a marked increase in the numbers of people looking for a
home for their money which they can trust, knowing that it has
a solid capital base and a long-standing history which will stand
it in good stead for the future.
"I
think investors can feel confident in stock market opportunities
if they are given a decent choice in how they access real assets
such as the equity market. Investors can really capitalise on
the markets if they can access funds across a number of asset
classes and sectors from a range of different investment managers
allowing diversification across assets and manager styles."
Notes to Editors:
The information contained in Prudential UK's press releases is
intended solely for journalists and should not be used by consumers
to make financial decisions. Full consumer product information
can be found online at www.pru.co.uk.
Notes to editors
* Survey conducted by Research Plus among 1,002 UK males aged
55-64 and UK females aged 50-59 between 23 and 30 April 2009 using
an online methodology
** Source: Yahoo finance FTSE 100 charts - correct as at date
of issue: 27th July 2009
About
Prudential:
"Prudential" is a trading name of The Prudential Assurance
Company Limited, which is registered in England and Wales. This
name is also used by other companies within the Prudential Group,
which between them provide a range of financial products including
life assurance, savings and investment products, such as a bond
investment and pensions, including advice on company
pensions.
Registered Office at Laurence Pountney Hill, London EC4R 0HH.
Registered number 15454. Authorised and regulated by the Financial
Services Authority.
Contact Details:
PR Contact:
Jonathan Akerman
Prudential
3 Sheldon Square
Westminster
London
W2 6PR
020 7150 2657
www.pru.co.uk
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