Table of Contents
- Issues in the Market
- Main findings of the research
- Abbreviations
- Market in Brief
- A variety of factors are driving demand for children' s savings
- The children' s savings market has grown in the last few years
- Trade perspective: CTF has raised the profile of children' s savings
- Mintel' s research findings: Product ownership
- Mintel' s research findings: Attitudes towards saving for children
- Mintel' s research findings: Targeting opportunities
- Broader Market Environment
- Key points
- The fertility rate now stands at its highest level in 26 years
- Figure 1: Total fertility rate in the UK, 1960-2006
- The total number of children in the UK is projected to rise
- Figure 2: UK population projections, by age, 1997-2027
- Household patterns have changed considerably in last few decades
- Figure 3: Households, by type of household and family, Great Britain,
1971-2006
- The growth of the lone parent
- Figure 4: Dependent children, by family type, Great Britain, 1972-2006
- Lone-parent families tend to save less than couple families
- Figure 5: Distribution of savings, by family status and amount of
savings, 2005/06
- The overall savings ratio remains at an historically low level
- Figure 6: Personal disposable income, consumer expenditure and the
savings ratio, 2002-12
- Any further rise in Child Benefit would also have a positive impact
- Figure 7: Rates of Child Benefit, 1995-2007
- Pocket money trends could also boost children' s savings
- Heightened need for children to save will boost the market
- A farewell to alms
- The pension problem
- The housing problem
- Internal Market Environment
- Key points
- The CTF is having a major impact on children' s savings market
- The low-down on the CTF
- This initiative will inevitably boost the number of child savers
- The CTF could become a catalyst for developing a savings culture
- CTF success could dampen demand for ' traditional' products
- Low nominal interest rates tend to constrain deposit-based growth
- Figure 8: Bank of England base rate, end of quarter, 1972-2007
- A strong stock market has boosted equity-based products...
- Figure 9: FTSE 100 index, last working day of each month, 1994-2007
- ... but market turbulence could hit future sales
- Competitive Context
- Key points
- Standard savings products are sometimes used to save for children
- Adult savings and debt repayments could hit children' s savings
- Presents could also be classed as a ' competitor'
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Market Size and Forecast
- Key points
- Almost 13 million adults hold savings products for a child
- Figure 10: Estimated number of adults owning children' s savings and
investment products, 2003 and 2007
- On the downside
- 3 million CTF accounts have now been opened...
- Figure 11: Number of Child Trust Fund vouchers issued and accounts
opened by parents, 2005-07
- ...but plenty of parents have left it to the experts
- Three quarters of all CTF accounts are stakeholder versions
- Figure 12: Child Trust Fund breakdown, by type of account and asset
value, April 2007
- One in four CTF accounts have received extra contributions
- Figure 13: Child Trust Fund contributions, by account type, April 2007
- More than a fifth of CTF accounts are worth £600 or more
- Figure 14: Child Trust Fund market values, by account type, April 2007
- The total amount saved on behalf of children is around £11 billion
- Forecast
- Assumptions
- Potential to bring 3.5 million new savers into the market
- Figure 15: Market forecast for children' s savings products, 2003-2011
- Two key target groups
- Figure 16: Identified target groups within total population, 2007
- How the 3.5 million potential future savers were estimated:
- Market Share
- Key points
- Family Investments is the leading provider of CTF accounts
- Family Investments -- a look at the leader
- The Children' s Mutual
- Four providers account for six in ten children' s savings accounts
- Companies and Products
- Key points
- The children' s savings market covers a diverse product range
- Child Trust Fund accounts
- Savings deposit accounts
- National Savings & Investments products
- Tax-exempt children' s savings plans
- Other equity-based products
- Pensions
- A broad range of organisations operate within this sector
- The mutual sector accounts for the majority of CTF providers
- Figure 17: List of organisations approved to provide CTF accounts,
September 2007
- Brand Communication and Promotion
- Key points
- The government has spent almost £11 million promoting the CTF
- A major campaign
- Figure 18: Total amount spent by the government on advertising the CTF,
by media type, 2004/05-2006/07
- From small seeds...
- Total industry adspend amounted to £1.2 million in last 12 months
- Figure 19: Advertising expenditure on children' s savings and investment
products, 2002/03-2006/07
- Declining spend
- The press accounts for the largest proportion of expenditure
- Figure 20: Advertising expenditure on children' s savings and investment
products, by media type, 2005/06 and 2006/07
- Investment firms top the children' s savings adspend chart
- Figure 21: Advertising expenditure on children' s savings and investment
products, by organisation, 2005/06 and 2006/07
- A friendly word in your ear
- Channels to Market
- Key points
- Various channels are used to distribute children' s savings products
- Some CTF providers work with a wide array of distributors
- Figure 36: List of CTF distributors, by provider organisation they are
working with, September 2007
- Affinity partnerships can be used to generate new custom
- The Internet is becoming an increasingly important channel
- The Consumer -- Product Ownership
- Key points
- Survey background
- One in eight consumers regularly save for their own children
- Figure 37: Frequency of saving or investing for children, by
relationship to child, July 2007
- A total of 15 million adults are saving for a child' s future
- Figure 38: Proportion of adults saving or investing for children, July
2007
- Figure 39: Profile overview of adults saving or investing for children,
July 2007
- C2 aspirations
- Family savings analysis
- Figure 40: Frequency of saving or investing for own children by parents
at the family lifestage, by gender, age, socio-economic group, income and
newspaper readership, July 2007
- CTF accounts are the most commonly held children' s products
- Figure 41: Types of saving and investment products held for or on behalf
of children, July 2007
- Deposit-based savings
- Three quarters of parents with under-5s hold a CTF account
- Figure 42: Types of saving and investment products held for or on behalf
of children, by age of own children in household, July 2007
- The CTF effect
- NS&I products are a popular choice with grandparents
- Figure 43: Types of saving and investment products held for or on behalf
of children, by relationship to child, July 2007
- The Consumer -- Attitudes towards Saving for Children
- Key points
- A large majority of adults feel children need to have savings
- Figure 44: "It is essential children have savings for when they are
older", July 2007
- All those against
- Here' s to absent presents
- Figure 45: "It is a good idea to spend less on presents and instead save
more for the future", July 2007
- The present profile
- Most respondents feel the CTF will encourage parents to save
- Figure 46: "The Child Trust Fund will help parents get into the savings
habit", July 2007
- Hitting the gaps in the market?
- Most families with young children have faith in the CTF
- The CTF is also expected to get children into the savings habit
- Figure 47: "The Child Trust Fund will help children get into the savings
habit", July 2007
- Creating a savings habit among non-savers?
- Most mid-income households feel the CTF will boost savings
- Appendix
- Proportion of adults saving for children
- Figure 55: Proportion of adults saving or investing for children, by
gender, age, socio-economic group and age/socio-economic group, July 2007
- Figure 56: Proportion of adults saving or investing for children, by
lifestage, Mintel' s Special Groups, detailed family lifestage and marital
status, July 2007
- Figure 57: Proportion of adults saving or investing for children, by
working status, income, TV region and newspaper readership, July 2007
- Product ownership
- Figure 58: Types of saving and investment products held for or on behalf
of children, by gender, age, socio-economic group and TV region, July 2007
- Figure 59: Types of saving and investment products held for or on behalf
of children, by lifestage, Mintel' s Special Groups, working status and
income, July 2007
- Importance of children' s savings
- Figure 60: "It is essential children have savings for when they are
older", by gender, age, socio-economic group and age/socio-economic group,
July 2007
- Figure 61: "It is essential children have savings for when they are
older", by TV region, income, lifestage and detailed family lifestage, July
2007
- Presents or cash?
- Figure 62: "It is a good idea to spend less on presents and instead save
more for the future", by gender, age, socio-economic group and
age/socio-economic group, July 2007
- Figure 63: "It is a good idea to spend less on presents and instead save
more for the future", by TV region, income, lifestage and detailed family
lifestage, July 2007
- Impact on parents' savings habits
- Figure 64: "The Child Trust Fund will help parents get into the savings
habit", by gender, age, socio-economic group and age/socio-economic group,
July 2007
- Figure 65: "The Child Trust Fund will help parents get into the savings
habit", by TV region, income, lifestage and detailed family lifestage, July
2007
- Impact on children' s savings habits
- Figure 66: "The Child Trust Fund will help children get into the savings
habit", by gender, age, socio-economic group and age/socio-economic group,
July 2007
- Figure 67: "The Child Trust Fund will help children get into the savings
habit", by TV region, income, lifestage and detailed family lifestage, July
2007
- Attitudes towards saving for children
- Figure 68: Level of agreement with various statements relating to saving
for children, July 2007
- Figure 69: Level of agreement with various statements relating to saving
for children, by relationship to child, July 2007
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