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

Retirement Planning - UK - January 2018

“As people continue to live longer and the government moves to limit the burden on the state, effective retirement planning will become more important than ever before. Older people are working for longer, whether out of necessity or choice. Initiatives such as the Pensions Dashboard will help encourage people to save more, but there is a tendency to rely too heavily on others to help fund retirement.”

– Patrick Ross, Senior Financial Services Analyst

This report examines the following issues:

  • Working later in life is becoming an accepted norm, particularly for women
  • Relying on friends and family in retirement may undermine other planning

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
    • Executive Summary

        • The market
          • The length of the average retirement is growing
            • Figure 1: Expectation of life for those aged 65 in each year, period principal projection, UK, 1981-2064
          • Auto-enrolment has boosted workplace pension ownership
            • Figure 2: Proportion of employees with workplace pensions, by pension type, 1997-2016
          • The consumer
            • Almost two thirds have at least one pension product
              • Figure 3: Pension product ownership, October 2017
            • More than half have financial products other than pensions for retirement
              • Figure 4: Other savings and investment products held for retirement, by age, October 2017
            • Friends and family top the list of most likely sources
              • Figure 5: Most likely advice and guidance sources, October 2017
            • A quarter expect to increase contributions as they age
              • Figure 6: Outlook for retirement savings contributions, October 2017
            • Less than a third expect their standard of living to decline in retirement
              • Figure 7: Outlook for standard of living in retirement, October 2017
            • Non-retirees show frustration at moving state pension goalposts
              • Figure 8: Attitudes towards retirement and retirement planning, October 2017
            • What we think
            • Issues and Insights

              • Working later in life is becoming an accepted norm, particularly for women
                • The facts
                  • The implications
                    • Relying on friends and family in retirement may undermine other planning
                      • The facts
                        • The implications
                        • The Market – What You Need to Know

                          • The length of the average retirement is growing
                            • Auto-enrolment has boosted workplace pension ownership
                              • FCA and the government focus on improving support
                              • Retirement Planning Environment

                                • The length of the average retirement is growing
                                  • Figure 9: Expectation of life for those aged 65 in each year, period principal projection, UK, 1981-2064
                                • Longer life expectancy means a greater dependence on state support
                                  • Figure 10: UK population, by age band, and dependency ratios, 2016-86 (based on 2016 projections)
                                • The rate of increase in the state pension age has been accelerated
                                  • Figure 11: Projected dates for full transitions to increase state pension ages, by gender
                              • Retirement Funding Options

                                • Auto-enrolment has boosted workplace pension ownership
                                  • Figure 12: Proportion of employees with workplace pensions, by pension type, 1997-2016
                                • Millennials to bear the brunt of the drop-off in DB schemes
                                  • Figure 13: Proportion of employees with workplace pensions by age band and type of pension, 2016
                                  • Figure 14: Proportion of employee jobs with workplace pensions, by type of pension, 2016
                                • Fewer personal pensions are being arranged
                                  • Figure 15: Number of new individual personal and stakeholder pensions, 2011-16
                                • Lifetime ISA reframes ISAs as retirement savings vehicles
                                    • Figure 16: Number of ISAs and amounts subscribed, segmented by component type, 2010/11-2016/17
                                  • Annuity sales have been outpaced by income drawdown
                                    • Figure 17: Volume of new annuity and income drawdown sales, 2012-16
                                  • One in ten people aged 65+ are still working
                                    • Figure 18: Employment rate among people aged 65+, Q1 2010-Q3 2017
                                  • Buy-to-let regulation could discourage retirement planning linked to property
                                    • Figure 19: New buy-to-let mortgages, by purpose of loan, not seasonally adjusted, 2011-16*
                                • Regulatory and Legislative Changes

                                  • Pensions Dashboard prototype goes live
                                    • Three advisory firms due to merge into one
                                      • New rules mean annuity providers must encourage shopping around
                                      • The Consumer – What You Need to Know

                                        • Almost two thirds have at least one pension product
                                          • More than half have financial products other than pensions for retirement
                                            • Friends and family top the list of most likely sources of information
                                              • A quarter expect to increase contributions as they age
                                                • Less than a third expect their standard of living to decline in retirement
                                                  • Non-retirees show frustration at moving state pension goalposts
                                                  • Pension Product Ownership

                                                    • Almost two thirds have at least one pension product
                                                        • Figure 20: Pension product ownership, October 2017
                                                      • Younger Millennials lag behind on workplace pension ownership
                                                        • Figure 21: Pension product ownership, by generation, October 2017
                                                      • Pension ownership falls among lower earners
                                                          • Figure 22: Pension product ownership, by gross annual household income, October 2017
                                                      • Other Products and Plans for Retirement

                                                        • More than half plan to use non-pension savings and investments to fund retirement
                                                          • Figure 23: Other savings and investment products held for retirement, October 2017
                                                        • 25-34s are at risk of poor returns on cash savings
                                                          • Figure 24: Other savings and investment products held for retirement, by age, October 2017
                                                        • A third of non-retired people plan to fund retirement through an earned income…
                                                            • Figure 25: Other retirement funding plans, October 2017
                                                          • … rising to 46% of non-retired females aged 55+
                                                              • Figure 26: Other retirement funding plans, by age and gender, October 2017
                                                            • Half of non-retired people focus on 1-3 alternative products and plans
                                                              • Figure 27: Number of other savings/investment products and retirement funding plans, combined repertoire, October 2017
                                                          • Most Likely Advice and Guidance Sources

                                                            • Friends and family top the list of most likely sources
                                                                • Figure 28: Most likely advice and guidance sources, October 2017
                                                              • Personal pension holders more likely to take formal advice
                                                                • Figure 29: Most likely advice and guidance sources, by pension product ownership, October 2017
                                                              • Younger people recognise they will need support
                                                                  • Figure 30: Use of any advice source, October 2017
                                                              • Outlook for Retirement Savings Contributions

                                                                • A quarter expect to increase contributions as they age
                                                                  • Figure 31: Outlook for retirement savings contributions, October 2017
                                                                • Good intentions to increase contributions weaken as people age
                                                                  • Figure 32: Outlook for retirement savings contributions, October 2017
                                                                • People with alternative retirement funding plans are still more likely to say savings will increase
                                                                  • Figure 33: Outlook for retirement savings contributions, by other retirement funding plans, October 2017
                                                              • Outlook for Standard of Living in Retirement

                                                                • Less than a third expect their standard of living to decline in retirement
                                                                  • Figure 34: Outlook for standard of living in retirement, by outlook for retirement savings contributions, October 2017
                                                                • Younger people are more optimistic about an improvement in their standard of living
                                                                  • Figure 35: Outlook for standard of living in retirement, October 2017
                                                              • Attitudes towards Retirement and Retirement Planning

                                                                • Non-retirees show frustration at moving state pension goalposts
                                                                  • Figure 36: Attitudes towards retirement and retirement planning, October 2017
                                                                • Scammers are undermining confidence in retirement planning
                                                                  • Just a quarter have made plans for future care needs
                                                                    • People are facing up to the reality of a ‘working retirement’
                                                                        • Figure 37: Agreement with the statement ‘I don’t think I will ever fully retire’, October 2016 / October 2017
                                                                      • Older people less keen on later life entrepreneurship scheme
                                                                        • Figure 38: Agreement with the statement ‘It would be a good idea to let people take money from their pension to set up a new business in later life’, by age, October 2017
                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                        • Abbreviations
                                                                          • Consumer research methodology

                                                                          Retirement Planning - UK - January 2018

                                                                          £1,995.00 (Excl.Tax)