United Kingdom Retirement Income Market Report 2020 – ResearchAndMarkets.com | Financial Buzz

United Kingdom Retirement Income Market Report 2020 – ResearchAndMarkets.com

The “UK Retirement Income Market Report” report has been added to ResearchAndMarkets.com’s offering.

The main purpose of this report is to review the UK pension decumulation market, i.e. how consumers are taking money from their pensions.

The prime focus is on decumulation from defined contribution pensions and especially how the pension decumulation market has changed under the impact of a series of legislative and regulatory changes, which have radically reshaped the types of pensions consumers have and how they are managing their pensions.

Report Highlights:

8 million adults in the UK are using a pension (other than the State Pension) to generate income, of which 4.6 million classify themselves as retired. Workplace pensions are the main source of pension income, with DB occupational pensions the most important.

The total sums insurance companies and self-administered pension funds pay out to individuals in receipt of a pension or to those taking cash from a pension, are expected to be in the order of £246.5 billion in 2019, 6% more than in 2018. This covers payments to all individuals in the UK and those living overseas.

Key Topics Covered:

Executive Summary

  • A multi-faceted market structure
  • Key market developments
  • Pensioners adopt a portfolio approach to retirement.
  • Most decumulation products are sold with advice
  • 8 million pensioners
  • Almost £250 billion paid out
  • The Future

Introduction

  • Broad Definitions
  • Workplace Pensions
  • Private schemes
  • Decumulation Actions
  • Abbreviations

Market Structure

  • Multiple means to access pension money
  • The risk transfer market complicates the picture
  • Number of companies
  • Almost 37,000 occupational schemes

Market Developments and Drivers

  • Covid-19
  • Almost 8 million adults are using a pension to generate income
  • One-in-five over 50-year-old pension holders have decumulated
  • Many consumers are not confident that they are saving enough.
  • So, pension holders adopt the portfolio approach to retirement
  • Because, many adults don’t have very large pension pots
  • Persistent concerns over pension transfers
  • Investment funds used for pensions told to consider if they are good value
  • The Pension Scheme Bill
  • The Pensions Regulator consults on revising its code of practice for DB funding
  • The FCA confirms retirement pathways will be introduced
  • Brexit

Decumulation Product Distribution

  • Overview of the distribution process
  • Most sales go via intermediaries
  • Captive and open markets

The Key Players

  • Largest Pension funds
  • The largest bulk annuity firms

Market Size and Trends

  • Almost 300,000 decumulation products sold in 2019
  • But almost 650,000 pension pots accessed for the first time
  • Smaller pots tend to be fully withdrawn
  • With over 2 million taxable flexible payments taken
  • When buying annuities, pension holders mainly select level only annuities
  • Around £250 billion paid out every year
  • Risk transfer market powers ahead

The Future

  • The Big Unknowns
  • There is a greater need for consumer advice and guidance
  • New investment products are likely

Associations

For more information about this report visit https://www.researchandmarkets.com/r/ywo0op

Contacts

ResearchAndMarkets.com

Laura Wood, Senior Press Manager

press@researchandmarkets.com

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