Pensions have long been a key political issue, and changing demographics mean that this has never been truer than at present. It is recognised that the government can no longer afford to guarantee retirees a generous state pension, and yet the ABI estimates that UK consumers need to save an additional £27 billion a year if they are to ensure adequate personal provision. In a culture increasingly orientated towards immediate gratification, few are prepared to set aside sufficient funds for a retirement that could be 40 years in the future. Mintel’s consumer research, commissioned specifically for this report, brings together the various issues facing the industry, with respondents questioned regarding their pension ownership and their attitudes towards retirement saving in general, the trustworthiness of the pensions industry, and the impact of the bear market of the early 2000s.

The report concludes with two sections offering an overview of the strategic issues facing the industry. ‘Industry Views and Issues’ draws upon Mintel’s trade interviews to highlight industry professionals’ views of the major developments in the market, while ‘The Future’ draws out the conclusions found in the report, and examines the opportunities and threats to personal pensions providers that are likely to emerge in the coming years.

Key industry issues covered include:

How to tackle the savings gap

Governmental initiatives to increase access to personal pensions

Influence of falling stock markets on investors and rise in ‘amateur landlords’ – set to continue?

Recent implications for key pensions providers from a bear market

Possible moves towards greater high street distribution

IFAs’ successes in the high-value areas of the market

Prospects for 2004 – an upturn in new pensions business?