Table of Contents
Executive Summary
-
- The market
- People are working longer
-
- Figure 1: Average age of exit from the labour market, by gender, 1999-2019
- Growth in life expectancy slows
- Rapid growth in workplace pension participation continues
-
- Figure 2: Proportion of employees with workplace pension, by type of pension, 2007-17
- Pension Schemes Bill reintroduced to Parliament
- The consumer
- Over half hold a workplace pension
-
- Figure 3: Pension ownership, October 2019
- A broad range of alternative sources of funding
-
- Figure 4: Other sources of retirement funding, October 2019
- Women are less likely to know the value of their pension
-
- Figure 5: Value of pensions held, October 2019
- Affordability is the biggest obstacle
-
- Figure 6: Reasons for not having a pension, October 2019
- Most hope to retire in their sixties
-
- Figure 7: Retirement age expectations, October 2019
- Half haven’t taken any action on their pension in the last year
-
- Figure 8: Retirement planning behaviours, October 2019
- Consumers are aware of the importance of retirement saving
-
- Figure 9: Attitudes towards retirement planning, October 2019
- What we think
Issues and Insights
-
- Addressing the gender gap in retirement planning
- The facts
- The implications
- Less predictable lifestyles are forcing a rethink in retirement funding
- The facts
- The implications
The Market – What You Need to Know
-
- People are working longer
- Growth in life expectancy slows
- Rapid growth in workplace pensions continues
- Pensions Schemes Bill reintroduced to Parliament
Retirement Planning Environment
-
- An aging population of homeowners
-
- Figure 10: Proportion of each age group living in owner-occupied property, 2008/09-2017/18
- The squeeze of private renting
-
- Figure 11: Proportion of age groups living in private rented accommodation, 2008/09-2017/18
- Growth of self-employment poses new challenges for pensions
-
- Figure 12: Self-employed workforce as a proportion of the total workforce, August-October 2008-August-October 2019
- People are staying in work longer
-
- Figure 13: Average age of exit from the labour market, by gender, 1999-2019
- Growth in life expectancy slows
-
- Figure 14: Life expectancy at age 65, by gender, 1980/82-2016/18
Retirement Funding Options
-
- Growth in workplace pension participation continues
-
- Figure 15: Proportion of employees with workplace pension, by type of pension, 2007-2017
- Under-40s are now most likely to have a DC pension
-
- Figure 16: Proportion of private sector workers with defined contribution pension, by age band, UK, 2007 to 2017
- ABI data shows a drop in new individual pensions
-
- Figure 17: Number of new individual personal and stakeholder pensions, 2013-18
- Over half of pensions pots are being fully withdrawn
-
- Figure 18: Overview of pots accessed for the first time, 2016/17-2018/19
- Equity release continues to grow, albeit at a slower pace
-
- Figure 19: New sales of equity release products, by volume and value, 2012-18
- NEST trials ‘sidecar’ savings
Regulatory and Legislative Changes
-
- Pension Schemes Bill reintroduced to Parliament
- Triple lock maintained
- FCA lays out new rules for ‘wake-up’ packs
- Plans for changes to auto-enrolment
- WASPIs lose pensions battle in the high court
The Consumer – What You Need to Know
-
- Over half hold a workplace pension
- Property and inheritance are expected to support retirement
- Women are less likely to know the value of their pension
- Affordability is the biggest obstacle
- Most hope to retire in their sixties
- Half haven’t taken any action on their pension in the last year
- Consumers are aware of the importance of retirement saving
Pension Ownership
-
- Over half hold a workplace pension
-
- Figure 20: Pension ownership, October 2019
- Huge rise in workplace pension ownership
-
- Figure 21: Workplace pension ownership, October 2015- October 2019
- A third of women lack a pension
-
- Figure 22: Pensions owned, by gender, October 2019
Other Sources of Retirement Funding
-
- 15% plan to use money from property to help fund their retirement
-
- Figure 23: Other sources of retirement funding, October 2019
- Young people lose faith in the state pension
-
- Figure 24: Expect to use the state pension to fund retirement, by age group, October 2019
- A fifth of Gen X hope inheritance will help fund retirement
-
- Figure 25: Reliance on inheritance, by age group, October 2019
Pension Values
-
- Over a third don’t know the value of their pension
-
- Figure 26: Value of pensions held, October 2019
- Addressing the gender gap in pensions
-
- Figure 27: Pension values, by gender, October 2018
Reasons for Not Having a Pension
-
- Affordability is the biggest obstacle
-
- Figure 28: Reasons for not having a pension, October 2019
- Under-35s feel too young to worry
-
- Figure 29: Reasons for not having any pension products, by age group, October 2019
Retirement Age Expectations
-
- Most hope to retire in their sixties
-
- Figure 30: Retirement age expectations, by age group, October 2019
- Confidence about retirement age drops in over-35s
-
- Figure 31: Confidence in retiring at expected age, by age and gender, October 2019
Retirement Planning Behaviours
-
- Half haven’t taken any action on their pension in the last year
-
- Figure 32: Retirement planning behaviours, October 2019
- Knowledge about pensions gives confidence in retirement
-
- Figure 33: Selected retirement planning behaviours, by confidence of retiring at expected age, October 2019
Attitudes Towards Retirement Planning
-
- Consumers are aware of the importance of retirement saving
-
- Figure 34: Attitudes towards retirement planning, October 2019
- General agreement on generational disparity
-
- Figure 35: “Retirement will be harder for future generations that it is for current retirees”, by generation, October 2019
- More young people view pensions as a risky way to save
-
- Figure 36: Pension schemes are a risky way to save money for retirement, by age group, October 2019
- Guiding working women towards trusted advice
-
- Figure 37: Retirement Planning – CHAID – Tree output, October 2019
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
- Methodology
-
- Figure 38: Retirement Planning – CHAID – Table output, October 2019
Back to top