Retirement Future Shelved by Economic Uncertainty

BERWYN, PA, December 8, 2008 -- Brinker Capital, a leading investment management firm, today released the year-end results of its Brinker Capital Retirement Indicator, a gauge of financial advisor sentiment regarding retirement-related issues.

"Our year-end results make obvious what most advisors feared - that their clients' retirement security has been severely jeopardized by ongoing market deterioration," noted John Coyne, President of Brinker Capital. "At the start of this year, fully 46% of our financial advisor respondents said their clients were still on track to a timely retirement. By the end of the year our advisors and their clients had a much bleaker picture of retirement: 88% of advisors now say their clients are off-target for a timely retirement, largely due to market depreciation."

Market Slump Forces Investors to Work Longer

When asked if their clients were on- or off-track to a timely retirement relative to their expectations a decade ago, 88% of advisors noted their clients are off-track. Of these respondents, 74% indicated it would take between one and five years to make up the retirement savings shortfall. As to the reasons for being off-track(1), fully 97% said "market depreciation," 51% noted "didn't start saving soon enough," and 47% said "general procrastination."

Advisors Must Re-examine Clients Pain Threshold

Perhaps no questions in the Retirement Indicator provoked as vigorous a response as: "Are you seeing a disconnect between your clients' responses on their risk tolerance questionnaires and the level of risk they are willing to take today?" Fully 75% of financial advisors weighed in with a resounding "yes." When asked if they think there should be a reassessment of the way clients' risk tolerance is measured, 76% said "yes."

Government Should Get Out of the Way of the 401k

When asked to comment on whether the government should mandate employee and employer participation in 401ks, 74% of advisors said "no." In addition, a decisive 92% of advisors said "government should stay out of the management of 401ks."

Other Results

Responses to some of the Retirement Indicator's other questions included:

• 65% of advisors noted that their clients "have become more vocal/involved in the investment process," whereas 31% said their clients "have stayed neutral about their involvement in the investment process." Only 4% of advisors indicated their clients are now "less vocal."
• 44% of advisors are seeing an increase in clients tapping into their retirement savings to provide liquidity for the near-term, versus 56% who have not experienced liquidation.
• When asked if they believe that the proposed full fee disclosure regulations (with respect to qualified plans) are needed, 67% of respondents said "yes."

For a copy of the full year-end survey, please contact Jemile Dragovic, jdragovic@middlebergcommunications.com

About the Study

The Brinker Capital Retirement Indicator was conducted online by Brinker Capital in November 2008. Results are based on responses from 221 advisors affiliated with insurance companies, independent broker-dealers and in sole practice. The study's copyright is held by Brinker Capital.

About Brinker Capital

Brinker Capital, Inc. is a leading independent investment management firm which provides managed account investment programs to individual and institutional investors through financial advisors. Brinker Capital was founded in 1987 by Charles Widger and is located in suburban Philadelphia. Visit Brinker Capital's website at www.brinkercapital.com.

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