UK Retirement Income Solutions market report
Everything you need to make the right decisions
Providing the most comprehensive and up-to-date information and analysis of the Retirement Income Solutions 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?
Products covered in this report
This Report examines the UK market for retirement income solutions which are targeted at defined-contribution (DC) pension savers.
Under current rules, DC pension holders can access their pension pot from the age of 55 and have the freedom to choose how and when they draw on it. They can take up to 25% of their pension tax free and then choose how they draw the rest, which will be subject to income tax above the marginal rate. The options are buying an annuity (secure income), moving into flexible drawdown (variable income), and withdrawing cash in a series of lump sums or the entire amount in one go (also known as Uncrystallised Fund Pension Lump Sum). Pension holders can also choose a mix of these options or they can choose to leave their pension fund invested.
Product definitions are as follows:
- An annuity is an insurance policy that provides a guaranteed/ secure income for life. There are various types. A conventional lifetime annuity provides a regular income for life while a shortterm (or fixed term) annuity provides a guaranteed income for up to five years. There are several sub-categories of annuity available on the market, including:
- Level annuity – pays a fixed amount of income (usually on a monthly basis) for the rest of an individual’s life, thus declining in real value due to inflation.
- Escalating (or increasing) annuity – provides a regular income that increases either by a constant proportion each year or in line with RPI inflation.
- Enhanced annuity – will pay a higher amount of income than a conventional annuity to someone who has a significant impairment or health problem (eg cancer or chronic asthma) or who has a negative lifestyle factor (eg smokes or is overweight), which could reduce his/her lifespan.
- Investment-linked annuity – the pension fund is invested, and thus the income paid varies according to the performance of the underlying investments. Investment-linked annuities can either be with-profits or unit-linked.
- Flexible drawdown provides a variable income by allowing the pension holder to take money from their pension pot as and when they need it, while keeping the rest invested.
- Uncrystallised fund pension lump sum (UFPLS) allows pension holders to take one-off or regular cash withdrawals directly from their pension. The first 25% of each withdrawal can be made tax-free, while the remaining 75% will be taxed as income at the pension holder’s marginal rate.
Expert analysis from a specialist in the field
Written by Sarah Hitchcock, a leading analyst in the Finance sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Despite fears that abolishing compulsory annuitisation would sound a death knell to a market already facing major challenges, Mintel’s research shows that there is still a core group of DC pension savers who are keen on considering an annuity as part of their retirement plans.
Senior Financial Services Analyst
What you get
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.
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.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
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.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
Why buy from us?
Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.
Buy now and you'll have instant access to the information you need to make the right decisions.
Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.
A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.