2023
9
UK Annuities and Income Drawdown Market Report 2023
2023-11-27T12:01:22+00:00
REPB81ECD01_48C4_479C_A918_222D9F81FF6D
2195
168328
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Report
en_GB
A rejuvenated annuity market and digital developments enabling new innovative solutions make this an exciting time for providers of retirement income products. A Mintel Analyst, Global Analyst…

UK Annuities and Income Drawdown Market Report 2023

£ 2,195 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s UK Annuities and Income Drawdown Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest retirement income market research, trends and consumer behaviours affecting your business. Get a 360° view of the annuities and income drawdown market UK including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • The impact of the cost of living on retirement income market.
  • Market share of major players, competitive strategies and launch activity in the retirement income market.
  • How pension savers have and plan to access pension funds in the future, including use of annuities and income drawdown.
  • Consumers’ concerns about retirement and retirement income choices.
  • Interest in new and emerging retirement income solutions.

Annuities and Income Drawdown Market UK: Current Outlook

A growing number of pension savers aged 45+ have postponed their retirement plans as a result of the high cost of living. More generally, there is a growing trend for people to retire later and to do so gradually. The latter has boosted interest in fixed-term products, which can be used to bridge any potential income gap.

  • Retirement income market statistic: 15% of pension savers aged 45+ have postponed their retirement plans due to the cost of living.

Retirement Income Market: Opportunities and Trends

Rising base rates revive interest in annuities

The rise in interest rates over the past two years is having a positive impact on the pension annuity market. As annuity rates have risen, the product has become more appealing to pension savers who are moving into the decumulation phase. Providers need to seize this opportunity by continually developing new propositions.

  • Annuities market opportunity: 28% of pension savers aged 45+ say pension annuities offer good value for money.

Dashboards will open new opportunities

Pension dashboards, once fully rolled out, will create a host of new opportunities for pension and retirement income providers, as well as advice firms.

  • Retirement income market: 42% of pension saves aged 35+ want their provider to offer pension dashboards.

Purchase our UK Annuities and Income Drawdown Market Report to receive a five-year forecast, consumer behaviour analysis, and recommendations for market opportunities.  Readers of this report may also be interested in our UK Retirement Planning Market Report 2023.

Companies Featured in the Full Report

Canada Life, Scottish Widows, Legal & General, Aviva, Just Group, Aegon.

Additional Features Included with Your Purchase

  • Interactive Databook: Each Databook is provided as an interactive website where you can deep dive into our consumer research data on your chosen topic so you can draw your own conclusions.
  • Consumer Confidence Tracker: Our Trackers paint the picture of the economic confidence and major concerns of up to 40 different demographics, tracking changes in attitudes over time.
  • Custom PowerPoints: Incorporate our consumer research data into your own work so you can win over your clients and stakeholders. Select insights from your report to create a custom presentation that is ready to download in minutes.
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  • Mintel’s Clients Portal: Our portal provides instant access to actionable analysis, podcasts, and trend pieces relevant to your industry that are published almost daily, as well as our annual Global Consumer Trends. You can also browse our extensive catalogue of market research reports.

Expert Insights from a Financial Services Analyst

This report, written by Sarah Hitchcock, a leading research analyst, delivers in-depth commentary and analysis to highlight trends in the retirement income market and add expert context to the numbers.

A rejuvenated annuity market and digital developments enabling new innovative solutions make this an exciting time for providers of retirement income products.

Sarah Hitchcock,
Global Analyst

Table of Contents

    • Key issues covered in this Report
  1. Executive Summary

    • Opportunities for the retirement income market
    • Market dynamics and outlook
    • What consumers want and why
    • Graph 1: proportion of over-55s who have accessed their pension, by method and age, 2023
    • Graph 2: pension access options intending to use, by age, 2023
    • Innovation and marketing
  2. Market Dynamics

    • Market size
    • Graph 3: number of new pension annuity and income drawdown sales (ABI members only), 2014-22
    • Graph 4: number of new drawdown sales – comparison of ABI and FCA data, 2018-22
    • Market forecast
    • Market segmentation
    • Graph 5: breakdown of annuity sales – single versus joint, 2014-23
    • Graph 6: breakdown of annuity sales – level versus escalating, 2023
    • Market share
    • Distribution channels
    • Graph 7: internal versus external annuity sales (ABI members only), 2020-22
    • Graph 8: non-advised sales’ share of volume sales (ABI members only), 2014-22
    • Macro-economic factors
    • Graph 9: the financial confidence index, 2016-23
    • Graph 10: use of advice and guidance by method of access, 2021/22
    • Graph 11: monthly 10-year gilt yield, 2008-23
    • Regulatory and legislative changes
  3. What Consumers Want and Why

    • Pension ownership and participation
    • Graph 12: ownership of pensions, by type, 2023
    • Graph 13: proportion of adults who own a pension and proportion who are making contributions, by age, 2023
    • Graph 14: segmentation of pension savers by number of pots owned, 2023
    • Pension access: past behaviour
    • Graph 15: proportion of over-55s who have accessed pension, by method, 2023
    • Graph 16: amount of pension savings accessed (rebased on all over-55s), by age, 2023
    • Graph 17: amount of pension savings accessed, 2023
    • Pension access:  future intentions
    • Graph 18: expected decumulation actions, by age, 2023
    • Concerns about pensions and retirement choices
    • Graph 19: level of concern about inflation risk and other retirement-related issues, 2023
    • Retirement plans and expectations among over-45s
    • Graph 20: impact of inflation on retirement plans and pension access, 2023
    • Graph 21: retirement plans and intentions, 2023
    • Graph 22: agreement with statement, “I think pension annuities offer good value for money”, by age, 2023
    • Interest in new retirement product solutions and services
    • Graph 23: retirement products and services wanted by pension savers, by age, 2023
  4. Industry developments and innovation

    • Market developments
    • Launch activity and innovation
  5. Appendix

    • Supplementary data
    • Market forecast data and methodology
    • Report scope and definitions
    • Methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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