INVESTMENT managers last night warned that unless drastic action was taken by the Government to tackle the pensions black hole, retirement would becoming an unobtainable dream.

Research by the parent company of North-East stockbroker Wise Speke found that nearly half of Britons have no confidence in Labour's ability to solve the pensions crisis.

The survey, by Brewin Dolphin, found that 45 per cent of the public have no confidence in the Government's ability to tackle the problem.

The study suggests the Government's record on pensions has not impressed the electorate. Seventy-one per cent of people nationally did not increase their pension contributions following the Government's announcement in 1997 to remove dividend tax relief for pension funds.

Don Robson, a divisional director at Wise Speke in Newcastle, said: "Before the 1997 election, Britain prided itself in the wellbeing of the nation's pension funds and cast aspersions towards the lack of funded schemes in continental Europe.

"Notwithstanding some significant falls in equity values during the bear market, the number of damaging changes to pension fund rules and additional taxation has left UK pensions in crisis.

"Pensions are long-term investments and knee jerk regulation can be dangerous coming so hard on the heels of a £5bn stealth tax.

"Urgent action needs to be taken to restore public confidence in the pension industry.

"Without serious and sustained financial planning whilst at work, a full-time and comfortable retirement is becoming an unobtainable dream."