As a large proportion of the UK population are rapidly heading towards retirement, ensuring adequate pension provision is becoming more important than ever before. Ironically, however, employer support for company pension schemes has gradually declined in recent times. Many firms in the UK have simply found it too onerous to run traditional occupational schemes and as a result have shifted more of the risk and responsibility to employees themselves. Consequently faith in the UK pensions system is being undermined as many employees are finding they are worse off than their predecessors.

This report examines the latest developments in the occupational and group personal pensions industry, ranging from demographic and economic trends to the possible impact of ongoing pension reforms. The Market Size section details changes and potential for growth in each segment of the market, while the report also identifies the key players and their performance within the marketplace. Finally, consumer research highlights trends in pension membership as well as attitudes and behaviour towards pensions in general.

Key report themes:

Despite an increase in the number of very large private sector schemes in 2006, there continues to be an overall downward trend in employer support for pensions.

The trend away from DB to DC continues, although DC schemes are less generous, more risky for members and have lower contributions levels.

The rising costs of new rules and regulation have led to increased activity in the pension buyout market as firms look to offload long-term risk and liability.

The increased burden being placed on occupational pension trustees by the Pensions Regulator is leading to a shortage of qualified and committed trustees.

An economic slowdown is making consumers more conscious about saving but there are also increased concerns about inflation.

Recent volatility in stockmarket performance has resulted in above-average swings in the value of pension funds.

There are concerns that the introduction of Personal Accounts in 2012 will lead to decreased competition and innovation in the pensions industry.