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Report
en_GB
The market outlook for personal pensions is steadily improving. Cost-of-living pressures remain, but are easing. This is creating more room for consumers to consider longer-term financial goals. Indeed, 46% of…
UK
Retirement and Pensions
simple
UK Personal Pensions Market Report 2025
"Growth prospects for personal pensions are improving, with easing pressure on household budgets set to create more room for consumers to consider long-term financial goals."
The market outlook for personal pensions is steadily improving. Cost-of-living pressures remain, but are easing. This is creating more room for consumers to consider longer-term financial goals.
Almost half of personal pension owners are planning to increase contributions over the next 12 months. Additionally, the upcoming introduction of higher tax rates on dividends and savings interest enhances the appeal of using tax efficient savings products, such as pensions.
However, policy uncertainty is currently one of the greatest threats to demand for personal pensions. From April 2027, unused pension assets will be included in a person’s estate for IHT, causing those at the upper-end of the market to re-evaluate how personal pensions fit into their plans. Ongoing changes to pension legislation create compliance complications for personal pension providers and advisers, while also damaging consumer engagement in retirement planning. A more stable regulatory environment is needed to maximise the market potential of personal pensions.
The development of digital pension management tools will allow providers to create highly engaging and intuitive personalised guidance services that will help produce best outcomes for pension savers. Providers that adopt these services will be best placed to attract and retain new business.
This Report Looks at the Following Areas:
The short-, medium- and long-term impact of the economic and regulatory environment on personal pensions
How challenger brands, like MoneyBox and Chest, are attempting to disrupt the personal pension market with technologically advanced app-based platforms
The key factors driving the choice of personal pension provider and contribution intentions over the next year
Measuring pension consolidation intentions, highlighting the barriers and factors influencing consolidation decisions
Insight into how frequently personal pension owners engage with their pensions, as well as their attitudes towards choosing investments and interest in additional guidance from providers.
Report Attributes
Details
Published Date
January 2026
Report Author
George Zaborowski, Senior Market Analyst
Market Data Range
2019-2025
Market Forecast
2025-2030
Measurement Metrics
Number of individual policies in force (2017-23), New individual pension premiums in £ (2019-30)
Market Segmentation
New personal pension contracts, New stakeholder pension contracts, New insure SIPP contracts
Channels to market – insured individual SIPPs premiums – single premium
Market forecast data and methodology
Market forecast and prediction intervals
Forecast methodology
Report scope and definitions
Products covered in this Report
Products covered in this Report (cont)
Abbreviations and terms
Consumer research methodology
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