United Kingdom (UK) Pensions Market Size, Trends, Competitive Landscape and Forecasts to 2027

• 1 Executive Summary

  • 1.1 Market overview
  • 1.2 Key findings
  • 1.3 Critical success factors

• 2 The State Pension and Retirement Planning

  • 2.1 Most individuals retire at around the SPA
  • 2.2 The state pension is not adequate to lead a moderate lifestyle, leading to the need for supplementation
  • 2.3 The cost-of-living has impacted the way consumers view their retirement incomes

• 3 Private Pensions: Market Size and Players

  • 3.1 Saving into workplace pensions increases, whilst other pension types fall in 2022
  • 3.2 Phoenix Group Holdings are now the top providers of trust-based pensions
  • 3.3 Other market developments

• 4 Saving for Retirement

  • 4.1 The number of individuals with workplace pensions is increasing due to AE
  • 4.2 Pension pot characteristics and saving attitudes

• 5 Pension Decumulation

  • 5.1 Many individuals are not seeking financial advice when withdrawing from their pension
  • 5.2 Consumers’ approach to accessing pensions for the first time
  • 5.3 Income drawdowns and annuities

• 6 Lifestyle in Retirement

  • 6.1 Retirees are confident about their retirement lifestyle and funds

• 7 Appendix

  • 7.1 Abbreviations, acronyms, and initialisms
  • 7.2 Definitions
  • 7.3 Methodology
  • 7.4 Secondary sources
  • 7.5 Future reading

• 8 About GlobalData
• 9 Contact Us

Table 1: Trust-based APE by product type (GBP million), 2018—22

Table 2: Individual APE by product type (GBP million), 2018—22

Table 3: New total premiums APE by advice type (GBP million), 2018—22

Table 4: Top 10 UK individual and workplace pension providers by GWP, 2021

Table 5: Top 10 UK trust-based pension providers by GWP, 2021

Table 6: Total minimum contribution rose to 8% of qualifying earnings in April 2019

Table 7: Example of average retirement income through annuities, January 2022 to November 2022

Figure 1: The SPA is set to reach 68 between 2044 and 2046, under current legislation

Figure 2: The majority of individuals retire around the SPA

Figure 3: Under the new state pension scheme, the disparity between state pension pay is much less than pre-2016

Figure 4: Non-retired individuals are less confident that they will receive a full state pension

Figure 5: Both retirees and non-retired place the most importance on the state pension to fund their retirement

Figure 6: 34.9% of individuals stated that they desire a retirement income between GBP2,000 and GBP2,999 a month

Figure 7: Men desire higher retirement incomes than women

Figure 8: A minimum of GBP12,800 per annum is needed for a single individual to cover expenses in retirement

Figure 9: Women need greater pension pots than men due to having longer life expectancies

Figure 10: Non-retired individuals are less confident that their retirement income will cover living expenses

Figure 11: 35—39-year-olds are most concerned about their retirement incomes being sufficient

Figure 12: APE for work-based pensions solely contributed to the overall growth of the pensions market

Figure 13: 37.3% of self-employed individuals think their employment status will impact their retirement income

Figure 14: The majority of pensions distribution goes through the independent advice channel

Figure 15: The pensions market is predicted to continuously grow until 2027f

Figure 16: Younger place far greater emphasis on the importance of sustainable investing in their investment strategy

Figure 17: AS household income increases so does the intention to use the extra pension annual allowance

Figure 18: The proportion of employees with workplace pensions grows again in 2021

Figure 19: Younger consumers are more likely to have started a workplace pensions as a result of AE

Figure 20: Workplace pensions participation amongst 16-21-year-olds is low as a result of AE eligibility

Figure 21: 31.7% of individuals would never opt-out, emphasizing the desire to save for retirement

Figure 22: DC schemes continue to grow among non-retired, as employers continue to favor them

Figure 23: The total number of workplace pensions fall around SPA, as many consolidate their pensions

Figure 24: 61.9% of individuals contributing a minimum of 6% of their income towards their pension

Figure 25: The proportion of self-employed contributing nothing to their pension has fallen to 11.9% from 21.1%

Figure 26: Most employers match the contribution of their employees, whereas 15.6% go higher than the employees

Figure 27: Only 22.3% actively take part in the investment of their pension plan

Figure 28: Most individuals tend to know the size of their pension pot closer to retirement

Figure 29: 41.8% of individuals aged 65—69 have a pot of GBP10,000 – GBP30,000 compared to 21.8% of 60—64

Figure 30: There is a large disparity of pension pot size between men and women approaching the SPA

Figure 31: Over 55s have flexibility in terms of withdrawing pension income

Figure 32: The proportion of individuals using their pension fund for everyday expenses rose from 33.3% to 37.7%

Figure 33: Most individuals defer claiming a pension to work longer in order to gradually build up a larger fund

Figure 34: 56.0% of pension pots were completely withdrawn from upon its first time accessed

Figure 35: 85.2% of small pension pots (less than GBP10,000) are completely withdraw upon first access

Figure 36: New premiums for income drawdowns increase again in 2022

Figure 37: The value of taxable flexible payments from pensions significantly increased in Q2 2022

Figure 38: 88.9% of individuals state their lifestyle in retirement is better than or as expected in 2023

Figure 39: Roughly three quarters of retirees are confident their pension/savings are enough to last their entire life

Figure 40: Most retirees review their budget once a month