Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Workplace Pensions - UK - June 2017

“Whilst consumers clearly recognise the importance of paying into a workplace pension, many do not translate their attitudes into actions. Providers and employers may need to do more to incentivise employees to plan for retirement.
Promisingly for firms, consumers show a willingness to engage, with many keen to receive regular updates on their fund and hear about their projected retirement income.”
– Paul Davies, Senior Financial Services Analyst

This Report discusses the following key topics:

  • Consumers call for a ‘down-to-earth’ pension provider
  • Helping employees to help themselves

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Scope of this Report
        • Trust-based pensions
          • Contract-based pensions
          • Executive Summary

              • The market
                • Insurer-administered trust-based premiums expected to see marginal boost
                  • Figure 1: Forecast of new insurer-administered trust-based pension premiums, 2012-22
                • New single premiums to drive growth in the group sector
                  • Figure 2: Forecast of new group pension premiums, 2012-22
                • Workplace pensions are increasingly seen as safest way to save for retirement
                  • Half of private sector employees personally contribute less than 2%
                    • Figure 3: Percentage of salary personally contributed by employees with workplace pensions, by sector, 2016
                  • Companies and brands
                    • Continued consolidation
                      • Scottish Widows to launch master trust
                        • The consumer
                          • Two thirds of employees are enrolled
                            • Figure 4: Workplace pension enrolment, April 2016 and April 2017
                          • High interest in retirement income forecasts
                            • Figure 5: Attitudes towards workplace pensions, April 2017
                          • Over two fifths of pension holders would like regular updates
                            • Figure 6: Interest in workplace pension features, April 2017
                          • Dashboards: the new advice hub?
                            • Figure 7: Interest in workplace pension advice/guidance, April 2017
                          • What we think
                          • Issues and Insights

                            • Consumers call for a ‘down-to-earth’ pension provider
                              • The facts
                                • The implications
                                  • Helping employees to help themselves
                                    • The facts
                                      • The implications
                                      • The Market – What You Need to Know

                                        • Insurer-administered trust-based premiums expected to see marginal boost
                                          • New single premiums to drive growth in the group sector
                                            • Auto-enrolment continues to boost workplace pension ownership
                                              • Workplace pensions are increasingly seen as safest way to save for retirement
                                                • Half a million employers meet staging dates
                                                • Market Size and Forecast

                                                  • Trust-based schemes
                                                    • Growth stalls in the insurer-administered trust-based sector
                                                      • Figure 8: New insurer-administered trust-based pension business (volume and value), 2012-16
                                                    • Premiums expected to see marginal boost
                                                      • Figure 9: Forecast of new insurer-administered trust-based pension premiums, 2012-22
                                                      • Figure 10: Forecast of new insurer-administered trust-based pension business, 2017-22
                                                    • Forecast methodology
                                                      • Contract-based pensions
                                                        • Capacity crunch hits contract-based sector
                                                          • Figure 11: New group pension business (volume and value), 2012-16
                                                        • New single premiums to drive growth
                                                          • Figure 12: Forecast of new group pension premiums, 2012-22
                                                          • Figure 13: Forecast of new group pension business, 2017-22
                                                        • Forecast methodology
                                                        • Trends in Workplace Pension Ownership

                                                          • Auto-enrolment continues to boost workplace pension ownership
                                                            • Figure 14: Proportion of employees with workplace pensions, 1997-2016
                                                          • Half of private sector employees personally contribute less than 2%
                                                              • Figure 15: Percentage of salary personally contributed by employees with workplace pensions, by sector, 2016
                                                          • Market Drivers

                                                            • Workplace pensions are increasingly seen as safest way to save for retirement
                                                                • Figure 16: Financial products that consumers consider the safest way to save for retirement, July 2010-June 2012, July 2012-June 2014 and July 2014-June 2016
                                                              • Insurer-administered trust-based growth stalls
                                                                • Figure 17: Number of insurer-administered occupational pension scheme members and group pension policies in force, 2011-15
                                                              • Over half of employers using master trusts
                                                                  • Figure 18: Pension scheme types and number of auto-enrolled eligible jobholders declared by employers, as at 31 March 2016
                                                                • Half a million employers meet staging dates
                                                                  • Figure 19: Declarations of compliance, March 2017
                                                                • Over 800,000 new employers expected to stage in 2017/18
                                                                  • Figure 20: Staging profile – Forecast for the number of small, micro and newborn employers subject to full duties, 2015/16-2017/18
                                                              • Regulatory and Legislative Changes

                                                                • Pension Schemes Bill introduced
                                                                  • Snap election leads to omissions from the Finance Bill
                                                                    • LISA launches but receives limited backing
                                                                      • Minimum contributions set to rise
                                                                        • Figure 21: The minimum percentage of qualifying earnings to be paid by employers, employees and the government
                                                                      • Pensions dashboard to boost transparency
                                                                      • Companies and Brands – What You Need to Know

                                                                        • Continued consolidation
                                                                          • Scottish Widows to launch master trust
                                                                            • Getting ethical
                                                                              • Supporting small businesses with auto-enrolment
                                                                                • Above-the-line expenditure exceeds £30 million
                                                                                • Provider Rankings and Market Share

                                                                                  • Continued consolidation in trust-based sector
                                                                                    • Figure 22: Rankings of top 20 providers of insurance-administered trust-based occupational pension business, by gross premiums, 2015
                                                                                  • Aviva climbs to top spot in insurance-administered contract-based sector
                                                                                    • Figure 23: Rankings of top 20 providers of insurance-administered individual and group contract-based pension business, by gross premiums, 2015
                                                                                • Competitive Strategies

                                                                                  • Digital advice and guidance
                                                                                    • Scottish Widows to launch master trust
                                                                                      • Getting ethical
                                                                                          • Figure 24: Coverage of NEST’s climate-aware equity fund on Twitter, February/March 2017
                                                                                        • Supporting small businesses with auto-enrolment
                                                                                        • Advertising and Marketing Activity

                                                                                          • Above-the-line expenditure exceeds £30 million
                                                                                              • Figure 25: Total above-the-line, online display and direct mail advertising expenditure on pension products and advice, 2012/13-2016/17
                                                                                            • Digital advertising comes to the fore
                                                                                              • Figure 26: Distribution of above-the-line, online display and direct mail advertising expenditure on pension products and advice, by media type, April 2016-March 2017
                                                                                            • DWP continues to spend the most on ATL advertising
                                                                                              • Figure 27: Top 15 above-the-line, online display and direct mail advertisers of pension products and advice, 2015/16-2016/17
                                                                                            • Nielsen Ad Intel coverage
                                                                                            • The Consumer – What You Need to Know

                                                                                              • Workers at small firms being phased in to auto-enrolment
                                                                                                • Two thirds of employees are enrolled
                                                                                                  • One in five employees still confused about pension type
                                                                                                    • Converting attitudes into action
                                                                                                      • Over two fifths of pension holders would like regular updates
                                                                                                        • Dashboards: the new advice hub?
                                                                                                        • Size and Sector of Employer

                                                                                                          • Workers at small firms being phased in to auto-enrolment
                                                                                                              • Figure 28: Size and sector of employer worked for, April 2017
                                                                                                            • Small firm workers most ‘at risk’ of opting out
                                                                                                            • Pension Enrolment

                                                                                                              • Two thirds of employees are enrolled
                                                                                                                • Figure 29: Workplace pension enrolment, April 2016 and April 2017
                                                                                                              • Nearly half of small firm workers already enrolled
                                                                                                                • Figure 30: Workplace pension enrolment, by sector and size of employer, April 2017
                                                                                                            • Type of Workplace Pension

                                                                                                              • One in five employees still confused about pension type
                                                                                                                • Better access, better engagement
                                                                                                                  • Figure 31: Type of workplace pension enrolled in, April 2016 and April 2017
                                                                                                              • Attitudes towards Workplace Pensions

                                                                                                                • High interest in retirement income forecasts
                                                                                                                    • Figure 32: Attitudes towards workplace pensions, April 2017
                                                                                                                  • The unfairer sex
                                                                                                                    • Figure 33: Attitudes towards workplace pensions, by gender, April 2017
                                                                                                                • Interest in Workplace Pension Features

                                                                                                                  • Over two fifths of pension holders would like regular updates
                                                                                                                      • Figure 34: Interest in workplace pension features, April 2017
                                                                                                                    • Aggregation appeals
                                                                                                                      • Ethical funds have a place
                                                                                                                      • Awareness and Advice

                                                                                                                        • Jargon-free guidance could boost engagement
                                                                                                                          • Figure 35: Interest in workplace pension advice/guidance, April 2017
                                                                                                                        • Dashboards: the new advice hub?
                                                                                                                          • Only 1 in 4 pension holders has a preferred provider
                                                                                                                              • Figure 36: Provider awareness and engagement levels, April 2017
                                                                                                                          • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                              • Market structure and key players
                                                                                                                                • Employer duties
                                                                                                                                  • Pension supply and administration
                                                                                                                                    • Figure 37: Main participants in the workplace pension market and how they interrelate, 2017
                                                                                                                                  • Investment management
                                                                                                                                    • The rise of master trusts
                                                                                                                                      • Abbreviations
                                                                                                                                        • Consumer research methodology
                                                                                                                                        • Appendix – Market Size and Forecast

                                                                                                                                          • Trust-based sector forecast – Best-and worst-case scenarios
                                                                                                                                            • Figure 38: Forecast of new insurer-administered trust-based pension premiums – Best- and worst-case scenarios, 2017-22
                                                                                                                                          • Contract-based sector forecast – Best-and worst-case scenarios
                                                                                                                                            • Figure 39: Forecast of new group pension business – Best- and worst-case scenarios, 2017-22
                                                                                                                                          • Forecast methodology

                                                                                                                                          Workplace Pensions - UK - June 2017

                                                                                                                                          US $2,648.76 (Excl.Tax)