With RDR-related reforms set to make independent advice increasingly harder to come by for many consumers, rising interest in the ability to manage and monitor pensions online among younger savers can be seen as an encouraging sign. It suggests that savers are becoming increasingly more comfortable managing their own finances and may potentially be more willing to buy pension products directly in the future.

1. Personal and Stakeholder Pensions - UK - March 2013
Countries covered: United Kingdom
With RDR-related reforms set to make independent advice increasingly harder to come by for many
consumers, rising interest in the ability to manage and monitor pensions online among younger savers can be
seen as an encouraging sign. It suggests that savers are becoming increasingly more comfortable managing
their own finances and may potentially be more willing to buy pension products directly in the future.
George Zaborowski, Senior Analyst – Financial Services
Some questions answered in this report include: Is the start of pension auto-enrolment a threat or an
opportunity? As the market evolves where will personal pensions fit in? How important is a well-known
pension brand to consumers? What types of features will future savers look for in a pension?
table Of Content
introduction
abbreviations
executive Summary
the Market
little Prospect For Growth Over The Next Five Years
figure 1: Forecast Of New Personal And Individual Stakeholder Pension Business (regular Premiums Only)
–
fan Chart, 2007-17
new Single-premium Business Supported By Pension Transfers
figure 2: New Personal And Individual Stakeholder Pension Business – Regular And Single
Premiums,
2008-12
pension Auto-enrolment Increases Competitive Pressures
intermediaries Dominate Distribution
market Factors
economic Slowdown Deflecting Attention From Longer-term Financial Goals
recent Regulatory Developments
companies, Brands And Innovation
with Aviva At The Top, The Top Five Providers Control Two Thirds Of The Market
adspend On Pensions Boosted By Introduction Of Auto-enrolment In 2012
recent Product Development Has Been Driven By The Rdr
the Consumer
less Than Three In Five Non-retired Adults Contributing To Any Type Of Pension
figure 3: Active Pension Ownership And Retirement Savings, December 2012
Personal and Stakeholder Pensions - UK - March 2013

2. most Have Retirement Savings Valued At Less Than £30,000
figure 4: Value Of Retirement Savings, December 2012
simple Annual Statements And Low Costs The Most Important Pension Features
figure 5: What Consumers Look For In A Personal Pension, December 2012
the Internet And Ifas The Most Common Choices For Pension Advice
figure 6: Sources Of Pension Advice, December 2012
consumers Have Mixed Feelings Towards Retirement And Pensions
figure 7: Agreement With Statements About Saving For Retirement And Pensions, December 2012
what We Think
issues In The Market
is The Start Of Pension Auto-enrolment A Threat Or An Opportunity?
as The Market Evolves Where Will Personal Pensions Fit In?
how Important Is A Well-known Pension Brand To Consumers?
what Types Of Features Will Future Savers Look For In A Pension?
trend Application
staying On The Right Path Towards Retirement
young Savers With Grown-up Attitudes
mintel Futures: Generation Next
market Drivers
key Points
up And Down Economy Keeps The Focus On Near-term Financial Priorities
figure 8: Quarterly Changes In Gdp* And The Savings Ratio**, 1998-q3 2012
inflation Is Easing But Average Wages Are Not Rising
figure 9: Monthly Change In Rpi And Average Weekly Earnings, January 2009-december 2012
poor Annuity Rates Act As A Disincentive To Saving In A Pension
latest Regulatory Developments
rdr Reforms Now In Effect
pension Auto-enrolment Raising The Profile Of Pensions
flat-rate State Pension Set To Be Introduced In 2017
maximum Value Of Pension Contributions Set To Be Pulled Back Further
competitor Products
key Points
Personal and Stakeholder Pensions - UK - March 2013

3. competing Pension Products
new Occupational Dc Pension Business Falls In 2012
figure 10: New Insurer-administered Dc Occupational Pension Business (volume And Value), 2008-12
growth In New Gpp Business Continues
figure 11: Number Of New Individual Pension Contracts (including Gpps), By Type Of Product, 2008-12
wealthy Choosing Sipps Over The More Basic Individual Pensions
figure 12: Value Of New Individual Pension Business (including Gpps), By Premium, 2008-12
non-pension Alternatives
2011/12 Tax Year Isa Contributions Stagnate
figure 13: Value Of Isa Sales, By Type Of Isa, 2006/07-2011/12
figure 14: Volume And Value Of Isa Subscriptions, By Type Of Isa, 2006/07-2011/12
many Britons Prefer Property To Pensions
swot Analysis
figure 15: Personal And Stakeholder Pensions – Swot Analysis, 2013
who’s Innovating?
key Points
pensions Evolve With Regulatory Changes And Technological Advances
rdr Drives Changes In Personal And Individual Stakeholder Products
aviva And Aegon Reorganise And Refresh
rdr Pushing Some Ifas To Start Experimenting With ‘digital’ Advice
pensions Wizard From Wake Up Your Wealth – ‘algorithm-based Advice’
ifa Firm Informed Choice Set To Launch Ic Direct
market Size And Forecast
key Points
regular-premium Business Falls Sharply In 2012
figure 16: New Personal Pension And Individual Stakeholder Pension Business, 2008-12
transfers Continue To Artificially Support New Single-premium Business
figure 17: Transfers As A Share Of New Personal And Individual Stakeholder Pension Business, 2008-12
five-year Forecast Of Overall Regular Premiums
figure 18: Forecast Of New Personal And Individual Stakeholder Pension Business (regular Premiums
only) – Fan Chart, 2007-17
figure 19: Forecast Of New Regular-premium Personal Pension And Individual Stakeholder Pension
business, 2007-17
forecast Methodology
fan Chart Explanation
Personal and Stakeholder Pensions - UK - March 2013

4. market Share
key Points
aviva Holds On To Its Top Position In The Rankings In 2011
figure 20: Ranking Of Individual Pension Providers – Uk, By Gwp Relating To Total Individual
Pension And
income Drawdown Business, 2010 And 2011
companies And Products
aviva
standard Life
aegon Uk
lloyds Banking Group
friends Life
brand Communication And Promotion
key Points
introduction Of Auto-enrolment Provides A Boost To Pension Adspend
figure 21: Total Advertising Expenditure On Pension Products And Services (excluding Annuities), 2008-12
personal And Stakeholder Pension Advertising Rises By Two Thirds In 2012
figure 22: Total Advertising Expenditure On Pension And Retirement Income Product, By Sub-category,
2008-12
dwp Top Advertiser Of Pensions In 2012
figure 23: Top Five Advertisers Of Pension Products And Services, 2010-12
channels To Market
key Points
most Individual Pensions Sales Are Via Intermediaries
ifas Maintain Their Dominance In Personal Pension Sales
figure 24: New Personal Pension Business, By Sales Channel, 2008-12
direct Sales The Only Channel To See Growth In Stakeholder Business In 2012
figure 25: New Individual Stakeholder Pension Business, By Sales Channel, 2008-12
active Pension Ownership And Retirement Savings
key Points
just One In Seven Regularly Contribute To An Individual Pension
Personal and Stakeholder Pensions - UK - March 2013

5. figure 26: Active Pension Ownership And Retirement Savings, December 2012
auto-enrolment – An Opportunity Or A Threat?
incentive To Save In A Pension Is Particularly Strong For Higher Earners
figure 27: Active Pension Ownership And Retirement Savings, By Highest Rate Of Income Tax Paid,
december 2012
individual Pensions Will Remain Attractive For The Self-employed
figure 28: Active Pension Ownership And Retirement Savings, By Gender And Working Status,
december 2012
lack Of Retirement Savings Among Women Points To An Opportunity
value Of Retirement Savings
key Points
retirement Savings Primarily Concentrated At Values Below £30,000
figure 29: Value Of Retirement Savings, December 2012
a Large Proportion Of Over-45s Will Have To Play Catch-up
figure 30: Value Of Retirement Savings, By Gender And Age, December 2012
promoting The Peace Of Mind Of Getting Ahead Of The Game Early On In Life
pension Tax Relief Makes It Easier For Higher Earners To Accumulate Funds
figure 31: Value Of Retirement Savings, By Highest Rate Of Income Tax Paid, December 2012
individual Pension Owners Most Likely To Have £30k+ In Savings
figure 32: Value Of Retirement Savings, By Pension And Retirement Savings Ownership, December 2012
what Consumers Look For In A Personal Pension
key Points
simplicity And Cost Efficiency Most Important To Pension Savers
figure 33: What Consumers Look For In A Personal Pension, December 2012
interest In Professional Management And Choice Linked To Wealth
figure 34: Level Of Agreement With Selected Statements On What Consumers Look For In A Personal
pension, December 2012
the Importance Of A Well-known Brand Tends To Diminish Over Time
control Over Contributions More Important Than Control Over Investments
figure 35: Level Of Agreement With Selected Statements On What Consumers Look For In A Personal
pension, December 2012
a Flexible Approach Attractive For Younger People And High Earners
interest In The Ability To Manage And Monitor Pensions Online Set To Grow
sources Of Pension Advice
key Points
the Internet And Ifas The Most Popular Choices For Pension Advice
figure 36: Sources Of Pension Advice, December 2012
Personal and Stakeholder Pensions - UK - March 2013

6. source Of Pension Advice Changes With Age
figure 37: Sources Of Pension Advice, By Age And Gender, December 2012
among Those Who Would Use Just One Source, Ifas Come Out On Top
figure 38: Repertoire* On Sources Of Pension Advice, December 2012
for Most, Independent Pension Advice Is Out Of Reach
figure 39: Sources Of Pension Advice, By Value Of Retirement Savings, December 2012
with Auto-enrolment More Will Go To Employers For Pension Advice
figure 40: Sources Of Pension Advice, By Pension Ownership And Retirement Savings, December 2012
attitudes Towards Saving For Retirement
key Points
fewer Than Two In Five Agree That Saving For Retirement Is A Priority
figure 41: Level Of Agreement With Statements About Saving For Retirement, December 2012
confidence Of A Comfortable Retirement Dwindles With Age
figure 42: Level Of Agreement With Statements About Saving For Retirement, By Gender And Age,
December
2012
wealthy Are More Positive But Not Overwhelmingly Confident Either
coming Of Age During A Crisis A Blessing In Disguise
helping People To Stay On The Right Path To Retirement
those Who Own A Pension Tend To Have More Favourable Attitudes
figure 43: Level Of Agreement With Statements About Saving For Retirement, By Pension Ownership And
retirement Savings, December 2012
attitudes Towards Saving In A Pension
key Points
consumers Generally Show Little Interest In Pensions…
figure 44: Level Of Agreement With Statements About Saving In A Pension, December 2012
but 55% Agree That Early Access Would Make Them More Appealing
under-35s The Most Inclined To Want To Manage Their Own Pensions
figure 45: Level Of Agreement With Statements About Saving In A Pension, By Gender And Age, December
2012
existing Pension Owners Broadly More Positive But This Can Be Improved
figure 46: Level Of Agreement With Statements About Saving In A Pension, By Pension Ownership And
retirement Savings, December 2012
appendix – Market Forecast
best And Worst Case Scenario Forecast
figure 47: Forecast Of New Personal And Individual Stakeholder Pension Business (regular Premiums Only)
best And Worst Case Scenario, 2012-17
Personal and Stakeholder Pensions - UK - March 2013

7. appendix – Active Pension Ownership And Retirement Savings
figure 48: Active Pension Ownership And Retirement Savings, By Demographics, December 2012
figure 49: Active Pension Ownership And Retirement Savings, By Demographics, December 2012
(continued)
figure 50: Active Pension Ownership And Retirement Savings, By Demographics, December 2012
(continued)
figure 51: Active Pension Ownership And Retirement Savings Among Non-retired Adults, By Demographics,
december 2012
figure 52: Active Pension Ownership And Retirement Savings Among Non-retired Adults, By Demographics,
december 2012 (continued)
figure 53: Active Pension Ownership And Retirement Savings Among Non-retired Adults, By Demographics,
december 2012 (continued)
figure 54: Active Pension Ownership And Retirement Savings, By Type Of Pension Owned, December 2012
appendix – Value Of Retirement Savings
figure 55: Value Of Retirement Savings, By Demographics, December 2012
figure 56: Value Of Retirement Savings, By Demographics, December 2012 (continued)
figure 57: Pension Ownership And Retirement Savings, By Value Of Retirement Savings, December 2012
appendix – What Consumers Look For In A Personal Pension
figure 58: What Consumers Look For In A Pension – Easy-to-understand Annual Statements, By
demographics, December 2012
figure 59: What Consumers Look For In A Pension – Low Fees And Charges, By Demographics,
December
2012
figure 60: What Consumers Look For In A Pension – The Ability To Vary Contribution Levels As I
Please, By
demographics, December 2012
figure 61: What Consumers Look For In A Pension – Managed By An Investment Professional, By
demographics, December 2012
figure 62: What Consumers Look For In A Pension – Access To A Wide Variety Of Investment
Types, By
demographics, December 2012
figure 63: What Consumers Look For In A Pension – The Ability To Make Lump-sum Contributions,
By
demographics, December 2012
figure 64: What Consumers Look For In A Pension – The Ability To Manage How Pension Is
Invested, By
demographics, December 2012
Personal and Stakeholder Pensions - UK - March 2013

8. figure 65: What Consumers Look For In A Pension – The Ability To Monitor Pension Online, By
Demographics,
december 2012
figure 66: What Consumers Look For In A Pension – A Well-known Brand, By Demographics,
december 2012
appendix – Sources Of Pension Advice
figure 67: Sources Of Pension Advice, By Demographics, December 2012
figure 68: Sources Of Pension Advice, By Demographics, December 2012 (continued)
figure 69: Repertoire On Sources Of Pension Advice, By Demographics, December 2012
appendix – Attitudes Towards Saving For Retirement
figure 70: Agreement With The Statements ‘i Am Happy To Lock Up Some Of My Savings Until
Retirement’
and ‘saving For Retirement Is A Priority For Me’, By Demographics, December 2012
figure 71: Agreement With The Statement ‘i’m Confident I’ll Be Able To Save Enough
To Retire Comfortably’,
by Demographics, December 2012
appendix – Attitudes Towards Saving In A Pension
figure 72: Agreement With The Statements ‘saving In A Pension Would Be More Attractive If I Could
Access
the Funds Under Certain Circumstances’ And ‘it’s Better To Manage Your Own
Pension Savings’, By
demographics, December 2012
figure 73: Agreement With The Statements ‘there Are Better Ways To Save For Retirement Than A
Pension’
and ‘arranging My Own Personal Pension Is Not Necessary’, By Demographics, December
2012
figure 74: Attitudes Towards Saving In A Pension, By Value Of Retirement Savings, December 2012
uk Research Methodology
consumer Research
sampling And Weighting
definitions
qualitative Research
trade Research
informal
formal
Personal and Stakeholder Pensions - UK - March 2013

9. desk Research
statistical Forecasting
european Research Methodology
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Personal and Stakeholder Pensions - UK - March 2013