UK Retirement Planning Market Report 2022
£ 2,195 (Excl.Tax)
Description
The UK Retirement Planning Market Report examines consumer attitudes towards retirement planning, provides an overview of pension savings and explores legislative changes in the retirement market. This report covers the pension market size, market forecast, market segmentation and trends in the retirement planning environment.
Current Landscape of the UK Retirement Market
Mintel’s retirement planning market report shows that inflationary pressures in the UK have not yet had a significant effect on the level pension savers are able to contribute to their pension. However, the next 12 months are crucial for those who have managed so far to continue saving into their pension pot. For this group, ongoing price rises may force them to adjust their retirement planning behaviour and limit the amount they save into their pension to prioritise essential spending.
Retirement Planning Behaviour and Industry Statistics
The gender pension gap poses a significant challenge for the retirement market. Despite the fact that this is not a newly emerging issue, failure to appropriately address the gap has meant that it continues to widen, and women are becoming more disadvantaged when it comes to pension savings and funding an adequate retirement. There is scope in the retirement planning environment to improve access to pension advice and guidance for women to strengthen engagement and financial decision making.
- Workplace pension ownership increased from 54% to 59% between 2019 and 2022.
- 25% of women have a personal pension compared to 39% of men.
- 45% of consumers expect to use personal investments and savings to fund their retirement.
- 64% of adults with a pension product are currently contributing to their pension.
Future UK Retirement Market Trends
Engaging with younger consumers provides opportunities in the retirement market. Mintel’s retirement market research highlights those younger consumers who already hold pension products are looking to engage in pensions differently from older generations, such as finding information using social media.
The retirement market must engage and educate this group and help them make positive financial decisions, as this will become more crucial as people are forced to reassess spending and their household finances as the cost of living rises.
To discover more about the UK Retirement Planning Market Report 2022, read our UK Personal Pensions Market Report 2022, or take a look at our Financial Services Market Research Reports.
Quickly Understand
- Overview of the retirement planning environment.
- Pensions overview including occupational schemes, transfers and accessing pots.
- Update on the legislative changes in the retirement market.
- Pension product ownership and saving behaviour.
- Overview of other sources of income for retirement.
- Examines retirement planning consumer trends.
- Information sources when researching pensions and retirement planning.
Covered in this Report
Products: Saving and retirement funding plans
Brands: PensionBee, Fisher Investments, Royal London, Legal & General, Pension Wise.
Expert Analysis from a Specialist in the Finance Sector
This report, written by Natasha Hayes, a leading analyst in the finance sector, delivers in-depth commentary and analysis to highlight current trends in the retirement market and add expert context to the numbers.
The retirement planning environment has so far held up well despite the challenges that the COVID-19 pandemic has placed on the market. Cost of living pressures pose a new challenge for the industry. With inflationary pressures expected to persist throughout 2022 and into 2023, consumers face tough decisions. More people will need to reconsider how much they save into their pension whilst those nearing retirement will need support and advice as to how the new economic climate will impact their retirement plans.”
Natasha Hayes
Financial Services Analyst
Table of Contents
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Overview
- Key issues covered in this Report
- Market context
- Products covered in this Report
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Executive Summary
- The market
- Expansion in workplace pension ownership continues
- Figure 1: Pension product ownership, 2019-22
- Gender pensions gap is evident in personal pension ownership …
- … and remains a key industry concern
- Private pensions are seen as the leading funding option for retirement
- Figure 2: Expected sources of retirement funding, 2022
- Pandemic slows growth in DC pension ownership
- Figure 3: Total number of DC plans in accumulation, 2017-21
- Number of pensions accessed for the first time drops 12%
- Figure 4: Pension pots accessed for the first time, 2019/20-2020/21
- Pensions Dashboards initiative moves forward
- UK consumers face significant inflationary pressure …
- The consumer
- Most pension savers make regular pension contributions
- Figure 5: Frequency of pension contributions, 2022
- Cost of living pressures yet to filter through to pension savings
- Figure 6: Changes in regular pension contributions, 2022
- 47% of 45-64 year olds have not engaged with their pensions in last 12 months
- Figure 7: Retirement planning behaviours, 2022
- Men are more likely to have sought advice on pensions and retirement
- Consumers rely on government sources for pensions research
- Figure 8: Information sources when researching pensions, 2022
- Social media has a role to play in engaging younger savers
- There is an appetite for digital pension services
- Figure 9: Attitudes towards retirement planning, 2022
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Issues and Insights
- Cost of living pressures will impact pension contributions
- There are opportunities to target different generations of pension savers
- Gender pensions gap must be addressed to protect industry reputation
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Retirement Planning Environment
- UK consumers face significant inflationary pressures …
- … building concerns around saving for the future
- Employment has held up better than expected
- Average age of exit from labour market
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- Figure 10: Average age of exit from the labour market, by gender, 2002-21
- Slight drop observed in life expectancy
- Figure 11: Life expectancy at age 65, by gender, 1980/82 – 2018/20
- Uptake of financial advice is high for pensions
- Figure 12: New total regular premium pensions – Number of new contracts/lives, 2021
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Pensions Overview
- Growth in DC plans slowed during the pandemic
- Figure 13: Total number of DC plans in accumulation, 2017-21
- Occupational DC schemes represent 28% of all workplace pensions
- Figure 14: Proportion of employees with workplace pensions, by type of pension, 2011-20
- Number of new individual pensions increases in 2021
- Figure 15: Number of new individual personal and stakeholder pensions, 2014-21
- Number of pensions accessed for the first time drops 12%
- Figure 16: Pension pots accessed for the first time, 2019/20-2020/21
- DB to DC transfers falls to 6,000 in the six months to September 2021
- Figure 17: Defined benefit to defined contribution transfers, total plans, 2016-21
- Growth in DC plans slowed during the pandemic
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Legislative Update
- Pensions Dashboards enters develop and test phase
- Government suspends triple-lock for 2022/23
- DWP launches ‘green nudge’ trial
- Briefing paper highlights the UK’s gender pensions gap
- DWP opens consultation on pension support measures
- FCA introduces stronger nudges to Pension Wise guidance
- Dormant Assets Bill gains Royal Assent
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Advertising and Marketing Activity
- PensionBee was top advertiser in 2021/22
- Figure 18: Total above-the line, online display and direct mail advertising expenditure on pensions, by advertiser, 2017/18-2021/22
- Government seeks to promote Pension Wise
- PensionBee was top advertiser in 2021/22
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Pension Product Ownership
- Expansion in workplace pension ownership continues …
- Figure 19: Pension product ownership, 2019-22
- … especially amongst younger generations
- Figure 20: Workplace pension ownership, by age, 2022
- Workplace pension ownership suggests some gender parity …
- Figure 21: Workplace and other private pension ownership, by age and gender
- … however this is not the case for personal pensions and SIPPs
- Opportunities to support pension saving among temporary workers and the self-employed
- Figure 22: Pension product ownership, by employment contract type, 2022
- Expansion in workplace pension ownership continues …
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Sources of Income for Retirement
- Three quarters expect to use private pension for retirement
- Figure 23: Sources of retirement funding, 2022
- Consumers plan to rely on multiple sources of income for retirement
- Figure 24: Number of sources for funding retirement, repertoire analysis, 2022
- Three quarters expect to use private pension for retirement
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Pension Saving Behaviour
- 91% of Millennials are currently adding to their pension
- Figure 25: Frequency of pension contributions, by generation, 2022
- Those making occasional contributions use apps to manage pensions
- Figure 26: Use of apps to manage pensions, by pension contributions, 2022
- Most savers have maintained their pension contributions …
- Figure 27: Changes in regular pension contributions, 2022
- … and financial situation is enabling some to save more
- Men more likely to have increased regular pension contributions
- Figure 28: Regular pension savers who are saving more into their pension compared to 12 months ago, by age and gender, 2022
- 91% of Millennials are currently adding to their pension
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Retirement Planning Behaviours
- Nearly half of 45-64s haven’t interacted with pensions in last 12 months
- Figure 29: Retirement planning behaviours, 2022
- Pensions Dashboards will benefit those disengaged in retirement planning
- Figure 30: Knowledge of the Pensions Dashboards programme, by recent retirement planning behaviours, 2022
- Scope to improve pension advice and guidance services for women
- Figure 31: Retirement planning behaviours, by gender, 2022
- Nearly half of 45-64s haven’t interacted with pensions in last 12 months
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Information Sources for Researching Pensions
- Consumers expect to use government sources for pensions research …
- Figure 32: Information sources when researching pensions, 2022
- … especially those nearing or at retirement
- Figure 33: Use of government websites when researching pensions, by age, 2022
- Young women are much more likely to turn to friends and family for information
- Figure 34: Top five information sources when researching pensions for women aged 18-34, 2022
- Social media has a role to play for under-35s
- Figure 35: Use of social media/video channels as a source of information when researching pensions, by age, 2022
- Consumers expect to use government sources for pensions research …
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Attitudes towards Retirement Planning
- Consumers are keen to view all their pensions in one place
- Figure 36: Attitudes towards retirement planning, 2022
- Significant appetite for app-based pension management
- Figure 37: Use of apps to manage pensions(s), by generation, 2022
- Social media essential to maximise impact of Pensions Dashboard rollout
- Job mobility makes keeping track of pensions more difficult
- Continuing to build trust with consumers is essential
- Consumers are keen to view all their pensions in one place
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
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