Table of Contents
Overview
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- What you need to know
- Scope of this Report
- Trust-based pensions
- Contract-based pensions
Executive Summary
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- The market
- Insurer-administered trust-based premiums expected to see marginal boost
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- Figure 1: Forecast of new insurer-administered trust-based pension premiums, 2012-22
- New single premiums to drive growth in the group sector
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- Figure 2: Forecast of new group pension premiums, 2012-22
- Workplace pensions are increasingly seen as safest way to save for retirement
- Half of private sector employees personally contribute less than 2%
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- Figure 3: Percentage of salary personally contributed by employees with workplace pensions, by sector, 2016
- Companies and brands
- Continued consolidation
- Scottish Widows to launch master trust
- The consumer
- Two thirds of employees are enrolled
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- Figure 4: Workplace pension enrolment, April 2016 and April 2017
- High interest in retirement income forecasts
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- Figure 5: Attitudes towards workplace pensions, April 2017
- Over two fifths of pension holders would like regular updates
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- Figure 6: Interest in workplace pension features, April 2017
- Dashboards: the new advice hub?
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- Figure 7: Interest in workplace pension advice/guidance, April 2017
- What we think
Issues and Insights
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- Consumers call for a ‘down-to-earth’ pension provider
- The facts
- The implications
- Helping employees to help themselves
- The facts
- The implications
The Market – What You Need to Know
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- Insurer-administered trust-based premiums expected to see marginal boost
- New single premiums to drive growth in the group sector
- Auto-enrolment continues to boost workplace pension ownership
- Workplace pensions are increasingly seen as safest way to save for retirement
- Half a million employers meet staging dates
Market Size and Forecast
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- Trust-based schemes
- Growth stalls in the insurer-administered trust-based sector
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- Figure 8: New insurer-administered trust-based pension business (volume and value), 2012-16
- Premiums expected to see marginal boost
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- Figure 9: Forecast of new insurer-administered trust-based pension premiums, 2012-22
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- Figure 10: Forecast of new insurer-administered trust-based pension business, 2017-22
- Forecast methodology
- Contract-based pensions
- Capacity crunch hits contract-based sector
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- Figure 11: New group pension business (volume and value), 2012-16
- New single premiums to drive growth
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- Figure 12: Forecast of new group pension premiums, 2012-22
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- Figure 13: Forecast of new group pension business, 2017-22
- Forecast methodology
Trends in Workplace Pension Ownership
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- Auto-enrolment continues to boost workplace pension ownership
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- Figure 14: Proportion of employees with workplace pensions, 1997-2016
- Half of private sector employees personally contribute less than 2%
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- Figure 15: Percentage of salary personally contributed by employees with workplace pensions, by sector, 2016
Market Drivers
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- Workplace pensions are increasingly seen as safest way to save for retirement
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- Figure 16: Financial products that consumers consider the safest way to save for retirement, July 2010-June 2012, July 2012-June 2014 and July 2014-June 2016
- Insurer-administered trust-based growth stalls
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- Figure 17: Number of insurer-administered occupational pension scheme members and group pension policies in force, 2011-15
- Over half of employers using master trusts
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- Figure 18: Pension scheme types and number of auto-enrolled eligible jobholders declared by employers, as at 31 March 2016
- Half a million employers meet staging dates
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- Figure 19: Declarations of compliance, March 2017
- Over 800,000 new employers expected to stage in 2017/18
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- Figure 20: Staging profile – Forecast for the number of small, micro and newborn employers subject to full duties, 2015/16-2017/18
Regulatory and Legislative Changes
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- Pension Schemes Bill introduced
- Snap election leads to omissions from the Finance Bill
- LISA launches but receives limited backing
- Minimum contributions set to rise
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- Figure 21: The minimum percentage of qualifying earnings to be paid by employers, employees and the government
- Pensions dashboard to boost transparency
Companies and Brands – What You Need to Know
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- Continued consolidation
- Scottish Widows to launch master trust
- Getting ethical
- Supporting small businesses with auto-enrolment
- Above-the-line expenditure exceeds £30 million
Provider Rankings and Market Share
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- Continued consolidation in trust-based sector
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- Figure 22: Rankings of top 20 providers of insurance-administered trust-based occupational pension business, by gross premiums, 2015
- Aviva climbs to top spot in insurance-administered contract-based sector
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- Figure 23: Rankings of top 20 providers of insurance-administered individual and group contract-based pension business, by gross premiums, 2015
Competitive Strategies
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- Digital advice and guidance
- Scottish Widows to launch master trust
- Getting ethical
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- Figure 24: Coverage of NEST’s climate-aware equity fund on Twitter, February/March 2017
- Supporting small businesses with auto-enrolment
Advertising and Marketing Activity
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- Above-the-line expenditure exceeds £30 million
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- Figure 25: Total above-the-line, online display and direct mail advertising expenditure on pension products and advice, 2012/13-2016/17
- Digital advertising comes to the fore
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- Figure 26: Distribution of above-the-line, online display and direct mail advertising expenditure on pension products and advice, by media type, April 2016-March 2017
- DWP continues to spend the most on ATL advertising
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- Figure 27: Top 15 above-the-line, online display and direct mail advertisers of pension products and advice, 2015/16-2016/17
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Workers at small firms being phased in to auto-enrolment
- Two thirds of employees are enrolled
- One in five employees still confused about pension type
- Converting attitudes into action
- Over two fifths of pension holders would like regular updates
- Dashboards: the new advice hub?
Size and Sector of Employer
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- Workers at small firms being phased in to auto-enrolment
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- Figure 28: Size and sector of employer worked for, April 2017
- Small firm workers most ‘at risk’ of opting out
Pension Enrolment
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- Two thirds of employees are enrolled
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- Figure 29: Workplace pension enrolment, April 2016 and April 2017
- Nearly half of small firm workers already enrolled
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- Figure 30: Workplace pension enrolment, by sector and size of employer, April 2017
Type of Workplace Pension
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- One in five employees still confused about pension type
- Better access, better engagement
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- Figure 31: Type of workplace pension enrolled in, April 2016 and April 2017
Attitudes towards Workplace Pensions
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- High interest in retirement income forecasts
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- Figure 32: Attitudes towards workplace pensions, April 2017
- The unfairer sex
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- Figure 33: Attitudes towards workplace pensions, by gender, April 2017
Interest in Workplace Pension Features
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- Over two fifths of pension holders would like regular updates
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- Figure 34: Interest in workplace pension features, April 2017
- Aggregation appeals
- Ethical funds have a place
Awareness and Advice
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- Jargon-free guidance could boost engagement
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- Figure 35: Interest in workplace pension advice/guidance, April 2017
- Dashboards: the new advice hub?
- Only 1 in 4 pension holders has a preferred provider
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- Figure 36: Provider awareness and engagement levels, April 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Market structure and key players
- Employer duties
- Pension supply and administration
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- Figure 37: Main participants in the workplace pension market and how they interrelate, 2017
- Investment management
- The rise of master trusts
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Trust-based sector forecast – Best-and worst-case scenarios
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- Figure 38: Forecast of new insurer-administered trust-based pension premiums – Best- and worst-case scenarios, 2017-22
- Contract-based sector forecast – Best-and worst-case scenarios
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- Figure 39: Forecast of new group pension business – Best- and worst-case scenarios, 2017-22
- Forecast methodology
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