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IMPORTANT INFORMATION
Press releases are intended for information only and should not be relied upon by customers when making investment decisions. While all efforts are made to ensure that the content of press releases are accurate at the time of publication, the information contained within past press releases should not be relied upon as still being current.

27.11.2006
Standard Life Savings and Investment Index

Overall Index score has increased but too few people saving

The overall index score* from the Standard Life Savings & Investment Index ("the Index") has increased from 11 points when the Index started in July 2005 to 23 in October 2006 (see Table 1). Despite this positive trend only 58% of the UK population are saving on a regular basis, a 5.5% increase from July 2006.

For the first time since the Index began retirement has taken over from holidays to claim the top spot for what respondents are saving for. Just under half of those saving stated that they are saving for retirement, an increase of 6% from July, with a corresponding decrease of 6% of respondents saving for holidays. As would be expected at this time of year those saving for Christmas has significantly increased from 20% in July to 29% in October.

Trevor Matthews, Chief Executive, Standard Life Assurance Limited, "It is encouraging that more people are saving and, of those who are saving, more are saving for their retirement. Although it is worrying that only 33% of those questioned are satisfied with the level of their retirement planning."

This could be explained by the fall in popularity of specific investment vehicles. Personal pensions have fallen in popularity by 18% from a high of 27 points in July to 22 points in October although employer/occupational pension schemes are viewed as slightly more attractive than they were during the summer. The popularity of Self Invested Personal Pensions (SIPPs) has dropped by 21% to 15 points as we move away from the main selling season. Individual Savings Accounts (ISAs) continue to score the highest at 51 points, a drop of 5.5% from July.

Mr Matthews continued "The UK has the highest level of personal debt in Europe and for this to change we must make it as easy to save as it is to borrow. 37% of respondents in our research expected to save more in the year ahead but without a change in cultural attitudes to savings this may be optimistic. For attitudes to change it is important that savings are seen as the new "must have" like a gym membership or an ipod."

As in previous waves, people's own homes and buy-to-let property are the most popular investment vehicles although buy-to-let has seen a 4.65% drop in attractiveness. Equities have seen an increase in popularity to 12 points from a low in July of 2 points but have yet to regain their high of January 2006.

*The Standard Life Savings and Investments Index scores are calculated by adding the good/very good figures together and subtracting those stating bad/very bad.




- Ends -

Media enquiries please contact:

Yvonne Savage
PR Manager
Standard Life Assurance Limited
Direct: 0131 245 076
Mobile: 0771 248 6331
Email: yvonne_savage@standardlife.com


Notes to Editors

1. The Standard Life Savings and Investment Index is a quarterly survey measuring consumer sentiment for investment classes and savings vehicles.
   
   
2. The research has been carried out by Experian who use their Canvass Opinion Survey, a quantitative online methodology. The most recent wave of fieldwork took place between 14th and 20th October 2006 with an overall sample size of 1500.
   
   
3. Respondents are asked "On a scale of 1 to 5, where 1 = very bad and 5 = very good, please consider the following list of investment categories and tell me whether you feel it is a good or bad time to invest in this way for your financial future:
   
   • Cash/basic savings accounts,
   • Notice account,
   • Stocks and shares
   • Bonds (Premium, National Savings),
   • Property - investment in own home/renovation
   • Property - buy to let
   • Alternative Investments (Gold, Fine wine, Antiques)
   The Index scores are calculated by removing those who state 'don't know' then taking the remaining respondent's base size (including those stating 'OK'), adding the good/very good figures and minusing those stating bad/very bad.
   
   
4. Copies of the full report are available in PDF format on request.
   
   
5. Standard Life has approximately 7 million customers worldwide and provides an extensive range of products and services, aimed at meeting the financial requirements of customers throughout their lives.