The overall market for personal pensions has been growing steadily over the last few years, although pension ownership amongst the adult population in the UK remains relatively low. SIPPs have become increasingly popular over the last few years, whilst stakeholder pensions have failed to achieve the success that many had hoped for. The reform of the UK pensions system is likely to have a major impact on the market, although uncertainty remains over what this might be.

The UK’s ageing population is a particular concern for the government, whilst the long-term growth in personal disposable income bodes well for the market. The collapse and closure of occupational schemes has encouraged many to go the route of individual pensions, and regulatory changes like A-day, the Retail Distribution Review, and the Pensions White Paper have all made their mark on the industry. Consumer perceptions that products are complicated, coupled with a highly apathetic attitude towards retirement planning, are probably the main barriers to greater penetration – although if it were possible to make pensions sexy, someone would probably have done it by now.

This report looks in detail at the personal pensions market, exploring the many factors that influence the market and drive consumer demand. As well as internal and external market factors, regulatory developments are summarised. Competitive products are explored before looking at examples of innovation within the marketplace. A presentation of key company profiles follows alongside an analysis of market shares and distribution channels. This report also contains a dedicated section on branding in which the personality of individual brands as well as the characteristics of the wider industry is presented.

Key issues:

Pensions are perceived by most as being complicated… and boring.

Most consumers have an apathetic attitude towards pensions.

An ageing population is forcing the government to encourage retirement self-provision.

Most new business comes in through IFAs, but access to such advice is restricted.

Alternatives to pension ownership, particularly buy-to-let, are becoming popular.