Author: Mintel Group Ltd.
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Personal Pensions - UK - April 2016
Overview
 
What you need to know
The personal pensions market has seen a rapid decline in new premium business over the past few years. However, the implementation of new pension freedoms in 2015 has renewed interest in pension savings, with new regular premiums increasing by 20% to £268 million during the year, and new single premiums growing by 44% to £7,155 million.

However, the full impact of the new rules is yet to be seen, with the prospect of further change continuing to pose a challenge for the future of the personal pensions market. The announcement of the new Lifetime ISA and speculation about further change to pension tax relief could also limit demand going forward. In addition, providers face widespread disengagement among consumers about saving for the long term and confusion about pensions and benefits of saving in one.

This Report explores the regulatory environment for the personal pensions market, including analysis on the potential threats and opportunities facing the market. It presents Mintel’s exclusive consumer research, which explores the attitudes of both those with and without personal pensions. It analyses the ongoing challenges consumers face in saving towards retirement, and presents recommendations for how providers and advisers can encourage consumers to become more active in considering their retirement income plans.

Products covered in this Report
There are various types of personal pensions available. This Report has focussed on the following product types:

Personal pensions
Personal pensions are a type of defined contribution pension scheme, whereby any contributions made qualify for tax relief at the rate the individual is paying. They are set up by the individual and act independently of any workplace pensions held. They do not qualify for employer contributions (unless specifically requested).

Individual stakeholder pensions
Individual stakeholder pensions are a type of defined contribution personal pension. They differ to other personal pensions in that they have low minimum contributions, a maximum annual contribution of £3,600 and have capped charges, which are set by the Government. Before auto-enrolment, it was required that any employer that did not offer a workplace pension would have to provide their employees with access to a stakeholder pension.

Products not covered in this Report
This Report makes reference to Self-Invested Personal Pensions. However, for further information on this product please see Mintel’s SIPPs – UK, December 2015 Report.

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