UK Individual and Group Pensions 2009

리서치사	Datamonitor
발행일	2009년 07월	상품코드	96352
페이지 정보	59 pages
가격	US $ 4,495 ￦ 5,355,700 PDF by E-mail (Single User License) US $ 11,238 ￦ 13,390,000 PDF by E-mail (Global Site License)

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Abstract

Introduction

This report provides a comprehensive analysis of the individual pensions market, sizing the market for individual pension products, as well as providing insight into the distribution dynamics in the market. The report gives focus on how providers and the pensions industry as a whole can boost pension savings amid the government' s discussion of personal accounts to the individual pensions market.

Scope of this research

Examines the current shape of the individual pensions market and explores factors that are currently limiting the sale of pensions products
Comprehensive analysis of key products and regulatory trends affecting the pensions market in 2009
Assesses the strategies to combat key barriers to save for pension provision with particular focus on market conditions and demographics

Research and analysis highlights

The dominance of personal pensions in the individual pensions market has been overshadowed by the rise in popularity of SIPP products. Despite the strong prevalence of personal pensions in terms of both single and regular premium pensions new business, SIPPs have experienced the most impressive year-on-year growth over the last five years.

A great deal of uncertainty surrounds the future of personal pensions and stakeholder markets and much of its progression will also depend on the effects of the government' s plans for personal accounts in potentially drawing investors away from these pension products.

Key reasons to purchase this research

Provides detailed analysis of developments in the individual pensions market such as personal accounts
Access Datamonitor' s forecasts for the future market size of the UK Pensions market
Identify competitor innovations and dynamics, and changes taking place in the distribution dynamics of the market

OVERVIEW

Catalyst
Summary

EXECUTIVE SUMMARY

THE FUTURE OF THE UK PENSIONS MARKET

Introduction
Personal pensions and SIPPs continue to dominate the pensions market
- The rise and rise of SIPPs have been subdued by the state of the economy
- The regular premium market saw slight growth amid economic turmoil
- The group personal pensions market has seen healthy growth over the past five years
- Investor desire for self-control has been a driver for choice of product
- New SIPP powers to hold protected rights will increase flexibility and investment choice for consumers
- The increasing interest in SIPPs does not necessarily signal an end for personal and stakeholder pensions
- Group personal pensions may play a key role in pensions beyond the introduction of Personal Accounts in 2012
- Group SIPPs are expected to flourish, but their emergence should be treated with caution
Most people are not well equipped to deal with the costs and risks involved in private pension provision
- People must be able to separate the concepts of building up a pension fund and receiving pension income
- Individuals are increasingly on their own in planning for retirement and need to understand the risks that they will shoulder
- The universally accepted belief that over the long term equities deliver good private pensions may be in question
- Demographic trends are making pension savings a necessity
People need to save for their retirement, but they are hindered by the perception of affordability
- People are not prepared to take on higher pension savings during a market downturn
- People need to be educated about striking the right balance between short- and long-term savings
- Affordability and short-term views act as compound barriers to pension savings
- People are not saving for the future, assuming they will be looked after by the buckling state system
Government reforms will not do enough to help individuals save for retirement
- Individuals face bigger burdens on private savings to produce good pensions
- The government hopes that Personal Accounts will address the problems of long-term retirement savings
- Personal Accounts are unlikely to hit the target
- The government and industry must put more personal responsibility on consumers regarding retirement planning
- The effectiveness of Personal Accounts is uncertain, and the market is becoming increasingly polarized between stakeholder and SIPP pensions
The pensions market faces regulatory changes from the Retail Distribution Review
- The RDR will increase the quality of advice and promote transparency of charges in retirement planning
- The RDR initiative aims to address current market failures
- The latest proposal outlines a clear distinction between ' sales' and ' advice'

THE FUTURE OF PRODUCT INNOVATION IN PENSIONS

Prudential and Standard Life head the competition in the pensions market
- Prudential sits at the top spot in the single premium pensions market
- Standard Life dominates the regular premium pensions market in 2008
Innovative strategies from providers must address people' s barriers to save
- Affordability is a great concern amongst non-savers
- Variable annuities can increasingly becoming part of a retirement and investment plan
- Targeted marketing, rather than new product development, must be the focus
- Providers and advisors should encourage people to exercise personal responsibility
- Those who do not have a route into a pension scheme can always look into alternatives to pension saving
Providers should target those approaching retirement who want to secure their retirement ambitions
- Accumulators are aged between 50 and 59, but have lifestage complexity
- Accumulators want their individual needs recognized with a personal service and are attracted to convenience
- Providers should reward accumulators to incentivize this segment to save
Providers should also target those with aspirations of accumulating wealth
- The pensions industry is missing the opportunity to harness the aspirer market
- Connecting to the world and having a sense of belonging appeals to aspirers
- Aspirers are increasingly seeking a purchase experience that is efficient and convenient
- Providers should establish early relationships with aspirers to gain business when they accumulate wealth

THE FUTURE OF PENSIONS DISTRIBUTION

IFAs are well-established in the pensions market, but many are shifting their focus up-market
IFAs perceive that pensions will prove to be less difficult to sell than other products
- IFAs will play a crucial role in the new pensions era
Regulatory changes to distribution represent a particular challenge to the sale of SIPPs
- Online distribution remains a promising area in the individual pensions market
- Wrap platforms may soon reach a proliferation peak

APPENDIX

Data
Definitions
- Single premium policy
- Regular premium
- New business
- Life-based savings products
- In-specie contribution
- Pension product definitions
- ABI definitions of distribution channels
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer

TABLES

Table: Forecasts single premium pensions new business, £m annual premium equivalent (APE), 2009 - 13
Table: Forecast regular premium pensions new business, £m APE, 2009 - 13
Table: Single premium pensions new business for the top 10 pensions companies 2008, £m APE
Table: Regular premium pensions new business for the top 10 pensions companies 2008, £m APE
Table: Total single and regular premium pensions new business by distribution channel, £m APE, 2004 - 08
Table: How do you see business in each of the following areas changing over the next six months?
Table: Forecast single and regular premium pensions new business by distribution channel, £m APE, 2009 - 13
Table: Single premium pensions new business premiums £m APE, 2004 - 08
Table: Regular premium pensions new business premiums, £m APE, 2004 - 08
Table: How do you rank the following companies in terms of their overall service?

FIGURES

Figure: Personal pensions and SIPPs still dominate single premium pension sales in 2008
Figure: The regular premium pensions market saw slender growth in 2008
Figure: SIPP products will rise in popularity over the next five years
Figure: Group personal pensions are forecasted to dominate the regular premium pensions market
Figure: Pressure on the working age population is increasing as more people begin to retire
Figure: Longer life expectancies are producing growth in the number of older people in the UK
Figure: Affordability is a strong barrier against saving for a pension
Figure: Prudential dominates the single premium pensions field, with the highest market share by percentage in 2008
Figure: The majority of advisors view Prudential as a financially stable life company
Figure: Standard Life heads the group of leading regular premium pension providers, with the highest market share by percentage in 2008
Figure: Standard Life effectively employs use of celebrity to promote its ' Active Money' SIPP
Figure: The accumulators are a significant part of the population in the UK
Figure: Lincoln Financial Group offers a gentle reminder to consumers of the future challenges they may face in their lifetime
Figure: IFAs dominate the distribution of pension products
Figure: Advisors believe pension business will see an increase over the next six months
Figure: IFAs will continue to be the predominant distribution channel in the pensions market