Table of Contents
Executive Summary
-
- The market
- Pension business continues to grow…
- …driven mainly by single-premium contracts
-
- Figure 1: New workplace pension business (volume and value), by type of premium, 2014-18
- Completion of auto-enrolment stages signals stabilisation
-
- Figure 2: Forecast of the volume of new workplace pension contracts, 2014-24
- Pension ownership continues to rise
- Defined-contribution schemes account for 98% of auto-enrolment
- First Pensions Dashboard expected in 2019
- DWP launches consultation on the consolidation of DB schemes
- Ban on pension cold-calling comes into force
- Deadline for master trusts authorisation
- Companies and brands
- PIC claims top spot in trust-based pension business
- Royal London biggest provider of individual and work-based sector
- Providers making pensions more accessible
- Pensions, savings and financial wellbeing
- The consumer
- 73% of workers are enrolled
-
- Figure 3: Workplace pension enrolment, March 2019
- Confusion persists over type of pension held
-
- Figure 4: Type of workplace pension enrolled in, March 2019
- Majority are aware of the increase to minimum contributions
-
- Figure 5: Awareness of the minimum contribution increase, March 2019
- Workers less likely to make voluntary contributions
-
- Figure 6: Pension contribution intentions, March 2019
- Government expected to educate people…
-
- Figure 7: Top parties responsible for educating people about pensions, March 2019
- …and trusted to run Pensions Dashboards
-
- Figure 8: Trust in Pensions Dashboards providers, March 2019
- More than half of workplace pension holders are interested in joining a Pensions Dashboard
-
- Figure 9: Willingness to join a Pensions Dashboard, March 2019
- Fees and lack of knowledge are the biggest obstacles to pension pot consolidation
-
- Figure 10: Barriers to pension pot consolidation, March 2019
- What we think
Issues and Insights
-
- Pensions Dashboards need to go live with a bang…
- The facts
- The implications
- …but security will be paramount
- The facts
- The implications
- Pensions Dashboards and pot consolidation
- The facts
- The implications
The Market – What You Need to Know
-
- Pension business continues to grow…
- …driven mainly by single-premium contracts
- Pension ownership continues to rise
- Defined-contribution schemes account for 98% of auto-enrolment
- First Pensions Dashboard expected in 2019
- DWP launches consultation on the consolidation of DB schemes
- Ban on pension cold-calling comes into force
- Deadline for master trusts authorisation
Market Size and Forecast
-
- Pension business continues to grow…
-
- Figure 11: New workplace pension business (volume and value), 2014-18
- …driven mainly by single-premium contracts…
-
- Figure 12: New workplace pension business (volume and value), by type of premium, 2014-18
- …but the market is entering a steady phase
-
- Figure 13: Forecast of the volume of new workplace pension contracts, 2014-24
-
- Figure 14: Forecast of the volume of new workplace pension contracts, 2014-24
- Forecast methodology
Trends in Workplace Pension Ownership
-
- 76% of employees are members of a workplace pension scheme
-
- Figure 15: Proportion of employees with workplace pensions, 1997-2018
- Private sector employee contribution in line with minimum requirements
-
- Figure 16: Percentage of salary personally contributed by employees with workplace pensions, by sector, 2016-18
- Type of pension owned
-
- Figure 17: Employees with workplace pensions, by type of pension and sector, 2018
Market Drivers
-
- Employers continue to meet auto-enrolment duties
-
- Figure 18: Declarations of compliance, April 2019
- Defined-contribution schemes account for 98% of auto-enrolment
-
- Figure 19: Pension scheme used for auto-enrolment, 2017 and 2018
- At least 180,000 employers expected to have duties by 2020/21
-
- Figure 20: Quarterly forecast of employers due to comply with auto-enrolment, 2018/19-2020/21
Regulatory and Legislative Changes
-
- Phased increase to minimum contributions enters final stage
-
- Figure 21: Minimum employer and staff contributions to be paid to workplace pensions
- First Pensions Dashboard expected in 2019
- Single Financial Guidance Body renamed Money and Pensions Service
- DWP launches consultation on the consolidation of DB schemes
- Ban on pension cold-calling comes into force
- Changes in State Pension age
- FCA calls for “wake up” information packs to support workers on pension decisions
- Deadline for master trusts authorisation
- FCA and The Pensions Regulator launch joint strategy
Companies and Brands – What You Need to Know
-
- PIC claims top spot in trust-based pension business
- Royal London biggest provider of individual and work-based sector
- Providers making pensions more accessible
- Pensions, savings and financial wellbeing
- Pensions in the FCA’s regulatory sandbox
- Adspend exceeds £50 million
Provider Rankings
-
- PIC claims top spot in trust-based pension business
-
- Figure 22: Rankings of top 20 providers of trust-based pension business, by gross written premiums, 2015-17
- Royal London becomes biggest provider of individual and work-based sector
-
- Figure 23: Rankings of top 20 providers of individual and work-based pension business, by gross written premiums, 2015-17
Competitive Strategies
-
- LBG’s online and mobile banking integrate Scottish Widows pensions
- Legal & General launches financial wellbeing platform
- PensionBee introduces three new plan options
- Pensions in the FCA’s regulatory sandbox
- “Alexa, ask Aviva for my pension value”
- Pensions and money advice in the workplace
- Workplace ISAs as a complement to pensions
Advertising and Marketing Activity
-
- Above-the-line expenditure exceeds £50 million
-
- Figure 24: Total above-the-line, online display and direct mail advertising expenditure on pension products and advice, 2014/15-2018/19*
- Digital channels account for two thirds of spend
-
- Figure 25: Above-the-line, online display and direct mail advertising expenditure on pension products and advice, by media type, 2018/19*
- 99% of adspend concentrated in top 10 spenders
-
- Figure 26: Top 10 above-the-line, online display and direct mail advertisers of pension products and advice, 2017/18-2018/19*
- Other industry campaigns
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
-
- 73% of workers are enrolled
- Confusion persists over type of pension held
- Majority are aware of the increase to minimum contributions
- Workers less likely to make voluntary contributions
- Government expected to educate people…
- …and trusted to run Pensions Dashboards
- More than half of workplace pension holders are interested in joining a Pensions Dashboard
- Fees and a lack of knowledge are the biggest obstacles to pot consolidation
Pension Enrolment
-
- 73% of workers are enrolled
-
- Figure 27: Workplace pension enrolment, March 2019
Type of Workplace Pension Scheme
-
- Almost half of workers believe they are enrolled in a DB scheme
- Technology should help improve engagement and understanding
-
- Figure 28: Type of workplace pension enrolled in, by sector, March 2019
Awareness of the Minimum Contribution Increase
-
- Overall good levels of awareness…
-
- Figure 29: Awareness of the minimum contribution increase, March 2019
- …but there are important differences by demographics
Pension Contribution Intentions
-
- Workers less likely to make voluntary contributions
- The risk of mass opt-outs remains low
-
- Figure 30: Pension contribution intentions, March 2019
- Rainy day vs retirement
- Seamless spending and seamless saving
Educating People about Pensions
-
- Government and employers expected to guide people
-
- Figure 31: Top parties responsible for educating people about pensions, March 2019
- People recognise the importance of schools
-
- Figure 32: Parties responsible for educating people about pensions, rank, March 2019
Willingness to Engage with Pensions Dashboards
-
- The concept of Pensions Dashboards appeals to the majority
-
- Figure 33: Willingness to join a Pensions Dashboard, March 2019
- No, or don’t know?
- Parents of young children are an important demographic
-
- Figure 34: Willingness to join a Pensions Dashboard – CHAID – Tree output, March 2019
Trust in Pensions Dashboard Providers
-
- Once again, the government comes top in terms of trust
- Pensions Dashboards and Open Banking
-
- Figure 35: Trust in Pensions Dashboards providers, March 2019
Barriers to Pension Pot Consolidation
-
- Fees are the biggest single obstacle…
- …but educating people is even more relevant
-
- Figure 36: Barriers to pension pot consolidation, March 2019
- Pensions Dashboards and pot consolidation
- The DIY group: over-confident?
- The cautious: tools and advice welcome
-
- Figure 37: Barriers to pension pot consolidation, by willingness to engage with Pensions Dashboards, March 2019
- People more likely to have one main barrier
-
- Figure 38: Repertoire of barriers to pension pot consolidation, March 2019
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
- CHAID analysis methodology
-
- Figure 39: Willingness to join a Pensions Dashboard – CHAID – Table output, March 2019
-
- Figure 40: Willingness to join a Pensions Dashboard – CHAID – Table output, March 2019
Appendix – Market Size and Forecast
-
- Forecast methodology
-
- Figure 41: Best- and worst-case forecast of the volume of new workplace pension contracts, 2019-24
Back to top