Table of Contents
- Issues in the Market
- Key issues
- Definitions
- GPPs -- an alternative to an occupational pension scheme
- Significant benefits for employers
- Advantages over group SHPs and GSIPPs
- Market in Brief
- Market size and development
- Figure 1: New GPP business, 2001-07
- Regulation driving development
- Longevity -- the burning issue
- A competitive marketplace
- Innovation focused on high-end GSIPPs
- Market shares, companies and products
- Little direct advertising activity
- Employee benefit consultants increase their role
- Consumer understanding limited
- Mistrust still an issue
- Internal Market Environment
- Key points summary:
- Regulation is the biggest influence on market development
- Stimulating pension saving through simplification
- Fair play?
- The advent of the NPSS
- Free advice for consumers
- More pensions legislation in 2008
- Twice as many consumers with individual personal pensions rather than
employer sponsored
- Figure 2: Number of personal pension members, by type of scheme, 2006/07
- The number of occupational pension schemes has declined rapidly since 2001
- Figure 3: Number of private sector occupational pension schemes, by
scheme size, 2001-05
- The role of trustees
- GPPs have become more competitive but less profitable
- Take-up and persistency
- Changing priorities?
- So why not stakeholder instead?
- And then along came GSIPP
- Hybrid schemes may be the answer
- GPPs the solution of choice in 2007
- New threats on the horizon
- Broader Market Environment
- Key points summary:
- Increasing longevity still the key market driver
- Figure 4: Projected size of the UK population, by age band, 2007-44
- Savings set to rise
- Figure 5: Total PDI*, consumer expenditure and savings, 2003-12
- Employment patterns will influence potential for pension saving
- Competitive Context
- Key points summary:
- Pensions and pension substitutes
- Non-pension options
- Strengths and Weaknesses in the Market
- Market Size and Forecast
- Key points summary:
- Trusteeship has driven GPP sales upwards
- Resurgence in GPP business in force
- Figure 6: GPPs in force, 2001-06
- New GPP soars to record levels
- Figure 7: New GPP business, 2001-07
- Transfers currently account for three quarters of new single premiums
- Figure 8: Single premium GPPs and transfers, 2006-07
- Making good pension deficits
- Figure 9: Contributions to private pension schemes -- UK, 2001-06
- New insurance-administered occupational business steady in 2007
- Figure 10: New insurance-administered occupational pension business,
2001-06
- Individual new business takes up the slack
- Figure 11: Total new premiums, all individual pensions, 2002-07
- GPPs to continue to benefit from restructuring of the pension sector
- Figure 12: Forecast of new GPP business, 2002-12
- Factors used in the forecast
- Segment Performance
- Key points summary:
- Surge in transfers boosts single premium business
- Figure 13: GPPs in force, by type of policy, 2001-06
- Market Share
- Key points summary:
- AXA and Standard Life replace Lloyds TSB and Aegon at top of individual
pensions market
- Figure 14: Leading providers of individual pension products, 2005-06
- Occupational pension performance is also important
- Figure 15: Top 20 insurance companies in the occupational pensions
market, by net premiums, 2004 and 2005
- Companies and Products
- Key points summary:
- A fragmented sector in a concentrated market
- Prudential
- Legal & General
- Standard Life
- AXA
- Norwich Union
- Friends Provident
- Brand Communication and Promotion
- Key points summary:
- A note about the data used in this section
- Figure 16: Pensions adspend, by category, 2003-07
- GPPs -- little scope for direct advertising
- Focus for company pensions is on the trade press
- Figure 17: Company/occupational pension scheme adspend, by outlet,
2003-07
- Provider and scheme ad spend falls after A-Day
- Figure 18: Company/occupational pension scheme ad spend, by provider,
2003-07
- Advertising likely to grow in the future
- Channels to Market
- Key points summary:
- Independents -- not just IFAs
- Figure 19: GPP business by distribution channel, 2002-06
- Advice potential in GPP is huge
- One-to-one surgeries boost take-up
- Long-term benefits would flow
- The Consumer -- Market Context and Pension Ownership
- Key points summary:
- Company size is key
- Figure 20: Size of company worked for, September 2007
- Type of pension offered influenced by size of company
- Figure 21: Pension ownership, by size of company worked for, September
2007
- Pension ownership
- Figure 22: Pension ownership, September 2007
- Pensions ownership male-focused and upmarket
- Figure 23: Pension ownership, by gender and socio-economic group,
September 2007
- Pension ownership peaks among 35-54s
- Figure 24: Pension ownership, by age and lifestage, September 2007
- Part-time workers less likely to have pension arrangements
- Figure 25: Pension ownership, by special group and working status,
September 2007
- The higher the income group the greater the likelihood of owning a pension
- Figure 26: Pension ownership, by household income, September 2007
- Personal pensions are mid-market products
- Figure 27: Pension ownership, by housing tenure and newpaper readership,
September 2007
- Personal pension ownership higher in London than elsewhere
- Figure 28: Pension ownership, by region, September 2007
- All forms of pension ownership associated with attainment of higher
education
- Figure 29: Pension ownership, by terminal age of education, September
2007
- The Consumer -- Attitudes Towards Pensions
- Key points summary:
- Company contributions are a major influence on participation
- Figure 30: Attitudes towards company pensions among scheme members,
September 2007
- Availability of a pension scheme may be of declining importance in
employment decisions
- Figure 31: Attitudes towards company pensions among scheme members, by
gender and age, September 2007
- Mid-market and pre-/no family plan holders have differentiated views
- Figure 32: Attitudes towards company pensions among scheme members, by
affluence and lifestage, September 2007
- Third-age ABC1s see much change
- Figure 33: Attitudes towards company pensions among scheme members, by
special group and working status, September 2007
- Higher-earning scheme members most likely to value pensions
- Figure 34: Attitudes towards company pensions among scheme members, by
income and housing tenure, September 2007
- Broadsheet readers are ' traditional' scheme members
- Figure 35: Attitudes towards company pensions among scheme members, by
media usage, September 2007
- Attitudes among non-members
- Figure 36: Attitudes towards company pensions among non-members,
September 2007
- Men are much more negative about pension schemes than women
- Figure 37: Attitudes towards company pensions among non-members, by
gender and affluence, September 2007
- Scepticism about company pensions felt by all age groups
- Figure 38: Attitudes towards company pensions among non-members, by age
and lifestage, September 2007
- Older upmarket individuals less concerned about occupational schemes
- Figure 39: Attitudes towards company pensions among non-members, by
special group and working status, September 2007
- Pensions mean more to more affluent consumers
- Figure 40: Attitudes towards company pensions among non-members, by
affluence and housing status, September 2007
- Broadsheet readers less likely to trust company pensions
- Figure 41: Attitudes towards company pensions among non-members, by
Internet usage and newspaper readership, September 2007
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