Table of Contents
- Issues in the Market
- Key themes in the market
- Definitions
- Abbreviations
- Market in Brief
- The recession -- a testing time for pensions, savings and investments
- Population changes leading to new targeting opportunities
- Buy-to-let property market experiencing difficulty
- Stock market crashes affecting performance of pensions and investments
- Retirement planning initiatives and incentives abound
- Personal pension ownership may become eclipsed by state pension
- Internal Market Environment
- Key points
- Budget measures in both UK and RoI met with opposition
- RoI Supplementary Budget ' discouraging sensible financial planning'
- Figure 1: Supplementary Budget income tax rates, 2009
- Early retirement scheme in Public Sector set to free up government cash
- Lower-paid public servants to benefit from cut in pension-related tax
- Figure 2: Existing and new arrangements for pension tax charged to
public servants, RoI, 2009
- UK Budget to impact on NI pensions?
- Reactions to Budget measures
- The Budget redeems itself
- Silver lining for Irish pension industry?
- Property still dominates RoI investment portfolios
- Figure 3: Composition of household wealth, RoI, 2007 and 2008
- Pension protection for employees
- Reactions to the changes
- Defined-benefit schemes in decline
- Figure 4: Number of current defined-benefit schemes, RoI, 2003-07
- Figure 5: Percentage of employees enrolled in a employer-sponsored
defined-benefit scheme, UK, 2002-08
- Figure 6: Percentage of company-sponsored defined-benefit schemes that
are open or closed to new entrants, RoI, 2002 and 2007
- Defined-contribution schemes gain ground in RoI
- Figure 7: Number of current defined-contribution schemes, RoI, 2003-07
- Figure 8: Average employer contribution levels as a percentage of
salary, RoI, 2002 and 2007
- NI faring the same way
- NPSS to arrive by 2012
- Confidence in pensions returning in UK
- Figure 9: Respondents' choice of best way to save for retirement, UK, Q1
2009
- Figure 10: Person trusted to provide a pension, UK, Q1 2008 and Q1 2009
- RoI consumers less convinced about pensions
- Figure 11: Agreement that now is a good time to invest in the given
investment options, RoI, 2007 and 2008
- Broader Market Environment
- Key points
- Growing unemployment a concern for retirement planning market
- Figure 12: Economic outlook for NI and RoI, 2008-10
- Housing and construction
- Unemployment
- Consumer spending
- Consumer confidence beginning to return in Ireland
- Figure 13: Consumer sentiment index, RoI, January 2003-April 2009
- Implications for the retirement planning market
- PRSA providers to benefit from rising unemployment levels
- Contributions fall as consumers tighten their belts
- ' Would-be' savers deterred by poor interest rates and lower PDI
- Figure 14: Average annual UK and eurozone interest rates, January
2003-May 2009
- Investment trends shifting
- Population changes a boon to market
- Retirement lifespan longer than before
- Figure 15: Life expectancy at birth, by gender, NI and RoI,
1970/72-2005/07
- Figure 16: Percentage of over-65s in employment, NI and RoI, 2002-07
- Shifts in Ireland' s demographic structure to impact on market
- Figure 17: Population projections, by age group, NI, 2006-26
- Figure 18: Population projections, by age group, RoI, 2006-26
- Inflationary pressures on consumers
- Figure 19: Monthly changes in annual inflation rates* for CPI in RoI and
CPI and RPI in UK, January 2002-April 2009
- Strengths and Weaknesses
- Strengths
- Weaknesses
- Market Value and Forecast
- Key points
- Pension funds fall at the hands of the stock market
- Figure 20: Value of pension fund assets, RoI, 2003-08
- Figure 21: Value of pension fund assets, NI, 2003-08
- Some recovery in 2009 expected
- Figure 22: Percentage asset class weights of pension funds, RoI, 2003-08
- Savings market to suffer from consumer cautiousness
- Figure 23: Value of savings market, IoI, NI and RoI, 2003-13
- ' Dynamism' needed to drive the market forward
- Consumers to remain equity-averse as recession fares
- Figure 24: FTSE 100 and FTSE All-Share monthly index movements, January
2003-June 2009
- Figure 25: ISEQ monthly index movements, January 2003-June 2009
- Companies and Products
- Key points
- Abbey National plc
- Alliance & Leicester
- Allied Irish Bank (AIB)
- An Post Group
- Aviva
- Bank of Ireland Group (BoI)
- Halifax (Bank of Scotland Ireland Limited)
- Halifax (Bank of Scotland plc)
- HSBC Bank plc
- Irish Life & Permanent Group plc
- Nationwide
- National Irish Bank (NIB) and Northern Bank
- Post Office
- Rabodirect.ie
- Standard Life plc
- Ulster Bank Group
- Stockbrokers
- Cunningham Coates Stockbrokers
- Davy Stockbrokers
- Goodbody Stockbrokers
- The Consumer -- Product Ownership
- Key points
- Growth in RoI pension ownership likely to be impacted by recession
- Figure 26: Pension ownership (company and individual), NI and RoI,
2003-08
- Growing reliance on state pension indicative of pension market' s future?
- Figure 27: State pension ownership, NI and RoI, 2003-08
- RoI consumers filling up the piggy banks...
- Figure 28: Number of respondents with one, two or three or more
accounts, RoI, 2007 and 2008
- Figure 29: Number of respondents with one, two or three or more
accounts, NI, 2007 and 2008
- ...while NI consumers take advantage of tax-free savings
- Flexibility remains a key factor for savers
- Figure 30: Type of savings account owned by respondents, RoI, 2007 and
2008
- Fairweather NI savers vs regular RoI savers
- Figure 31: Top five most important factors when choosing a savings
account provider, NI and RoI, 2006 and 2008
- Confidence in RoI investments likely to be dampened by poor stock market
performance
- Figure 32: Percentage of respondents who have investments, stocks,
shares or unit trusts, NI and RoI, 2003-08
- Appendix
- Broader market environment
- Figure 35: Population projections, by age group, NI, 2006-26
- Figure 36: Population projections, by age group, RoI, 2006-26
- Who' s innovating?
- Figure 37: Agreement with statement ' Financial security after retirement
is your own responsibility' , by demographic breakdown, NI and RoI, 2008
- The consumer -- product ownership
- Figure 38: Pension ownership, NI, 2003-08
- Figure 39: Pension ownership, RoI, 2003-08
- Figure 40: ISA ownership, by demographic breakdown, NI, 2008
- Figure 41: Agreement with finance statements, NI, 2003-08
- Figure 42: Agreement with finance statements, RoI, 2003-08
- Figure 43: Agreement with statements relating to investments and
spending, NI, 2007 and 2008
- Figure 44: Agreement with statements relating to investments and
spending, RoI, 2007 and 2008
- Consumer target groups
- Figure 45: Consumer target groups, by agreement with statements, NI, 2008
- Figure 46: Consumer target groups, by demographic breakdown, NI, 2008
- Figure 47: Consumer target groups, by agreement with statements, RoI,
2008
- Figure 48: Consumer target groups, by demographic breakdown, RoI, 2008
- Millward Brown data
- Figure 49: Agreement with statements relating to lifestyle/shopping
habits affected by the credit crunch in the last three months, NI and RoI,
May 2009
- Figure 50: Agreement with statements relating to lasting impressions the
experience of the recession or credit crunch has had on respondents, NI and
RoI, May 2009
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