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UK Consumers and Financial Management Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Consumers and Financial Management market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

What you need to know

Financial management is a discipline that must be learned, but is not typically taught, leaving people to pick habits up here and there. Parents are a significant influence, but it can sometimes feel confusing and complicated when advice comes from a broad range of sources, particularly for young people.

Open Banking represents a huge opportunity for product providers to position themselves as more supportive than perhaps they have been in the past, and for app providers to build an excellent affinity with their users. Product providers which choose to offer Open Banking apps could be in a strong position to secure future business in a much more fluid market for financial products.

This Report covers how people manage their finances today, with a review of the types of financial management tools offered and the range of influences that act on people as their financial literacy develops. Mintel’s exclusive consumer research explores people’s financial confidence and their attitudes towards financial management in general.

Expert analysis from a specialist in the field

Written by Patrick Ross, a leading analyst in the Financial Services sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Open Banking is on the cusp of full implementation, and the financial management landscape feels ripe for a shake-up. That said, many are still comfortable using spreadsheets or paper-based methods, while financial confidence is being undermined by a lack of formal financial education. Providers can step in to provide support that is sorely needed. Patrick Ross
Senior Financial Services Analyst

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Increasing life expectancy makes later life planning more important
              • Figure 1: Expectation of life for those aged 65 in each year, period principal projection, by gender, UK, 1981-2064
            • One in five over-50s have no savings
              • Figure 2: Value of savings and investments, by age, June 2018
            • Rising funeral costs make it more important to plan in advance
              • Equity release sales soar
                • Figure 3: Sales of equity release products, by volume and value, 2011-17
              • Future of the Pension Dashboard uncertain
                • FCA’s Ageing Population report offers guidance to firms
                  • Companies and brands
                    • Encouraging conversations around later life
                      • 17% increase in later life financial planning adspend in 2017/18
                        • Figure 4: Total above-the-line, online display and direct mail advertising expenditure on later life financial planning products, 2013/14-2017/18
                      • The consumer
                        • Most have thought about their later life financial plans
                          • Figure 5: Consideration of later life financial plans, June 2018
                        • Half feel confident making plans
                          • Figure 6: Confidence in making later life financial plans, June 2018
                        • 45% would seek out professional advice
                          • Figure 7: Sources of information about later life financial planning, June 2018
                        • Most aren’t interested in later life products
                          • Figure 8: Ownership and interest in later life financial products, June 2018
                        • Income concerns are a priority
                          • Figure 9: Later life financial priorities, June 2018
                        • Majority want to live in their property for as long as possible
                          • Figure 10: Expectations for future living arrangements, June 2018
                        • 52% think financial services providers should do more
                          • Figure 11: Attitudes towards responsibilities for later life financial planning, June 2018
                        • Online platforms can make later life planning easier
                          • Figure 12: Attitudes towards managing and arranging later life finances, June 2018
                        • Increasing life expectancy puts pressure on to plan
                          • Figure 13: Attitudes towards working in retirement, June 2018
                        • What we think
                        • Issues and Insights

                          • Semi-retirement will delay later life planning
                            • The facts
                              • The implications
                                • Breaking the taboo around later life will encourage planning
                                  • The facts
                                    • The implications
                                    • The Market – What You Need to Know

                                      • Increasing life expectancy makes later life planning more important
                                        • Rising funeral costs make it more important to plan in advance
                                          • Equity release sales soar
                                            • Future of the Pension Dashboard uncertain
                                              • FCA’s Ageing Population paper offers guidance to firms
                                              • Market Environment

                                                • Increasing life expectancy makes later life planning more important
                                                  • Figure 14: Expectation of life for those aged 65 in each year, period principal projection, by gender, UK, 1981-2064
                                                • One in five over-50s have no savings...
                                                  • …and future retirees could be even more worse off
                                                    • Figure 15: Value of savings and investments, by age, June 2018
                                                  • Rising funeral costs make it more important to plan in advance
                                                    • Majority of long-term care provided at home
                                                      • Figure 16: Number of over-65s receiving long-term care, 2015/16
                                                    • Equity release sales soar
                                                      • Figure 17: Sales of equity release products, by volume and value, 2011-17
                                                    • Rising internet usage will change how people plan for later life
                                                      • Figure 18: Percentage of people who had used the internet in the last 3 months, by age, 2011-18
                                                  • Regulatory and Legislative Changes

                                                    • Tax changes means couples set to pass on £1 million tax-free by 2020
                                                      • Future of the Pension Dashboard uncertain
                                                        • Reforms to Funeral Expenses Payment
                                                          • Funerals plans providers question need for FCA regulation
                                                            • CMA launches investigation into funerals
                                                              • FCA’s Ageing Population report offers guidance to firms
                                                                • Care for Older People green paper delayed
                                                                • Companies and Brands – What You Need to Know

                                                                  • Encouraging conversations around later life
                                                                    • 17% increase in later life financial planning adspend in 2017/18
                                                                    • Competitive Strategies

                                                                      • Encouraging conversations around later life
                                                                        • Intergenerational focus can help with later life planning
                                                                          • Lending into later life
                                                                          • Advertising and Marketing Activity

                                                                            • 17% increase in later life financial planning adspend in 2017/18
                                                                              • Figure 19: Total above-the-line, online display and direct mail advertising expenditure on later life financial planning products, 2013/14-2017/18
                                                                            • SunLife is biggest spender on later life products
                                                                              • Figure 20: Total above-the-line, online display and direct mail advertising expenditure on later life financial planning products, by advertiser, 2015/16-2017/18
                                                                            • Nielsen Ad Intel coverage
                                                                            • The Consumer – What You Need to Know

                                                                              • Most have thought about their later life financial plans
                                                                                • Half feel confident making plans
                                                                                  • 45% would seek out professional advice
                                                                                    • Most aren’t interested in later life products
                                                                                      • Online platforms can make later life planning easier
                                                                                        • Increasing life expectancy puts pressure on to plan
                                                                                        • Consideration of Later Life Financial Plans

                                                                                          • Most have thought about their later life financial plans…
                                                                                            • Figure 21: Consideration of later life financial plans, June 2018
                                                                                          • …but only two in five have taken action
                                                                                            • Figure 22: Consideration of later life financial plans, by age, June 2018
                                                                                        • Confidence in Making Later Life Financial Plans

                                                                                          • Half feel confident making plans
                                                                                            • Figure 23: Confidence in making later life financial plans, June 2018
                                                                                          • Lack of confidence puts people off planning
                                                                                            • Figure 24: Confidence in making later life financial plans, by consideration of later life plans, June 2018
                                                                                        • Source of Information on Later Life Planning

                                                                                          • 45% would seek out professional advice
                                                                                            • Banks and building societies are an easy option
                                                                                              • Figure 25: Sources of information about later life financial planning, June 2018
                                                                                            • Online guides and assessments can introduce people to later life planning
                                                                                              • People are reliant on recommendations from family and friends
                                                                                                • Figure 26: Sources of information about later life financial planning, by age, June 2018
                                                                                            • Ownership and Interest in Later Life Products

                                                                                              • Most aren’t interested in later life products
                                                                                                • Figure 27: Ownership and interest in later life financial products, June 2018
                                                                                              • 25% are interested in owning a prepaid funeral plan
                                                                                                • Changing attitudes mean providers can be more frank about later life planning
                                                                                                • Later Life Financial Priorities

                                                                                                  • Income concerns are a priority
                                                                                                    • Figure 28: Later life financial priorities, June 2018
                                                                                                  • Half want to ensure their will is up to date
                                                                                                    • Figure 29: Later life financial priorities, by age, June 2018
                                                                                                  • 29% think it’s important to have money aside for long-term care costs
                                                                                                  • Future Living Arrangements

                                                                                                    • Majority want to live in their property for as long as possible
                                                                                                      • Figure 30: Expectations for future living arrangements, June 2018
                                                                                                    • Only 9% expect to release equity
                                                                                                      • A third of 50-57-year-olds expect to downsize
                                                                                                        • Figure 31: Expectations for future living arrangements, by age, June 2018
                                                                                                    • Responsibilities for Later Life Financial Planning

                                                                                                      • Two thirds think the government should do more…
                                                                                                        • …but there’s still an expectation of financial services providers
                                                                                                          • Figure 32: Attitudes towards responsibilities for later life financial planning, June 2018
                                                                                                      • Managing Later Life Financial Plans

                                                                                                        • Online platforms can make later life planning easier
                                                                                                          • Figure 33: Attitudes towards managing and arranging later life finances, June 2018
                                                                                                        • Low levels of interest in paid advice
                                                                                                          • Figure 34: Attitudes towards managing and arranging later life finances, by age, June 2018
                                                                                                      • Later Life Financial Planning and Retirement

                                                                                                        • Increasing life expectancy puts pressure on to plan
                                                                                                          • Figure 35: Attitudes towards working in retirement, June 2018
                                                                                                        • 55% don’t know when to think about later life financial planning
                                                                                                          • MPs propose care tax
                                                                                                            • Figure 36: Attitudes towards working in retirement, June 2018
                                                                                                        • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                            • Abbreviations
                                                                                                              • Consumer research methodology