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Annuities uk - august 2013

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The pensions landscape is changing. Older people are set to work for longer and delay their annuity purchase and younger people are facing a future of inadequate pension savings. Increased flexibility …

The pensions landscape is changing. Older people are set to work for longer and delay their annuity purchase and younger people are facing a future of inadequate pension savings. Increased flexibility as well as more education and advice around annuity products – particularly non-standard annuity products – is required in order to better equip consumers to make annuity decisions.

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  • 1. Annuities - UK - August 2013 The pensions landscape is changing. Older people are set to work for longer and delay their annuity purchase and younger people are facing a future of inadequate pension savings. Increased flexibility as well as more education and advice around annuity products – particularly non-standard annuity products – is required in order to better equip consumers to make annuity decisions. table Of Content introduction report Scope abbreviations executive Summary the Market new Annuity Premiums Increased By 25% In 2012 figure 1: Value Of New Pension Annuity Business, At Current Prices, 2008-18 intermediaries Play An Important Role In The Annuity Market figure 2: New Pension Annuity Premiums, By Sales Channel, 2007-12 market Factors increased Longevity Requires Changes In Attitudes Towards Retirement figure 3: Expectations Of Life At 65, 1981-2058 increase In Pension Age Population Projected Over Next 40 Years living For Longer Means Working For Longer For Many around 4 Million Over-45s Are Potential Annuitants annuity Rates Remain Low But Show Some Signs Of Improvement figure 4: Annuity Rates And Gilt Yields, January 1991-july 2013 qe Sees Has Negatively Impacted Pension Pay-outs… which Has Increased Interest In Enhanced Annuities stockmarket Improvements Could Peak Interest In Investment-linked Annuities figure 5: Ftse 100 And Ftse All Share – Monthly Index Movements, January 2004-june 2013 auto-enrolment Is Set To Have A Long-term Impact On Annuities the Impact Of Regulation Continues To Shape The Annuity Market income Drawdown Market Is Dwarfed By The Annuity Market companies, Products And Innovations the Annuity Market Is Dominated By 5 Big Players figure 6: Top 5 Providers In The Uk Annuity Market, By New Ape Premiums, 2012 flexibility Introduced To Just Retirement’s Fixed-term Annuity Annuities - UK - August 2013
  • 2. tesco Looks To Test The Waters In The Booming Annuity Market not-for-profit Service Launched To Help Advisers Work With The Omo the Consumer just Over A Quarter Of Over-45s Are Potential Annuitants figure 7: Savings And Investment Ownership, June 2013 some 53% Of Over-45s Will Use A Personal Pension To Fund Their Retirement figure 8: Retirement Funding Plans, June 2013 ifas And Financial Planners Will Continue To Play An Important Role In Annuity Selection figure 9: Annuity Research Preferences, June 2013 flexibility In Retirement Income Ranks High For Nearly A Third Of Non-retired Over-45s figure 10: Attitudes Towards Annuities, June 2013 what We Think issues In The Market is More Education Needed On The Different Types Of Annuity? will We See More Over-65s Working To Fund Their Retirement? do Non-traditional Retirement Funding Plans Pose A Risk To The Annuity Market? to What Extent Are People Realistic About Their Retirement Income Expectations? what Role Does The Adviser Have To Play In The Annuity Market Going Forward? trend Application working Past 65 Is Good For The Health And The Pocket expertise Is In Demand In The Annuity Market taking Care Of The Elderly Could Be Mutually Beneficial market Drivers key Points increased Longevity Places Pressure On Annuities figure 11: Expectations Of Life At 65, 1981-2058 a 30% Increase In The Number Of People Turning 65 In 2012 figure 12: Projected Size Of The Uk Population, By Age Band, 2012-56 just Over A Quarter Of Non-retired Over-45s Hold A Dc Pension increase In The Number Of Over-65s Working annuity Rates Show Some Signs Of Improvement figure 13: Annuity Rates And Gilt Yields, January 1991-july 2013 stockmarket Improvements Boost Interest In Investment-linked Annuities figure 14: Ftse 100 And Ftse All Share – Monthly Index Movements, January 2004-june 2013 auto-enrolment Is Set To Have A Long-term Impact On Annuities Annuities - UK - August 2013
  • 3. regulatory Environment key Points abi Code Of Conduct Designed To Build Consumer Confidence external Annuity Sales Continue To Increase figure 15: Share Of External Versus Internal New Pension Annuity Sales, 2001-12 gender Directive Set To Mean That Women Receive Higher Annuity Rates solvency Ii Impact Expected To Be Limited rdr Could Reduce Number Of Advised Sales fca Looks To Investigate Annuity Market income Drawdown Overview key Points income Drawdown Market Is Dwarfed By The Annuity Market figure 16: New Sales Of Pension Annuities Versus Income Drawdown Plans, 2007-12 external Sales Dominate In The Drawdown Market figure 17: Proportional Distribution Of External And Internal Sales Of Pension Annuity And Income Drawdown Products, 2012 ifas Are Even More Dominant In The Income Drawdown Market figure 18: New Pension Income Drawdown Premiums, By Sales Channel, 2008-12 swot Analysis figure 19: Swot Analysis For The Annuities Market, August 2013 who’s Innovating? key Points just Retirement Introduces Flexibility To Its Fixed-term Annuity Product tesco Launches Annuity Comparison Service annuity Quotation Portal Launched By Ipipeline wrap Platform Nucleus Launches Annuity Portal annuity Lead Generation Tool Launched market Size And Forecast key Points annuity Business Strengthens In 2012 figure 20: New Pension Annuity Business – Number Of New Contracts And The Value Of New Premiums, 2007-12 the Value Of New Annuity Business Is Set To Continue To Rise figure 21: Value Of New Pension Annuity Business, At Current Prices, 2008-18 figure 22: Value Of New Pension Annuity Business, At Current Prices, 2008-18 Annuities - UK - August 2013
  • 4. the Number Of New Annuity Contracts Is Also Expected To Grow figure 23: Volume Of New Pension Annuity Business, 2008-18 figure 24: Volume Of New Pension Annuity Business, 2008-18 forecast Methodology segment Performance key Points small Pension Pots Account For The Bulk Of Annuity Sales figure 25: Proportional Distribution Of Annuities Sold, By Fund Size, 2012 mid-sized Fund Growth Continues To Prevail figure 26: Number Of Annuities Sold, By Size Of Fund, 2007-12 investment And Enhanced Annuities Grow In Popularity figure 27: Breakdown Of Pension Annuity Sales, By Main Product Type, 2010-12 enhanced Annuities Sales Reach Record Levels In 2012 figure 28: Number Of New Enhanced/impaired Life Annuity Contracts And As A Percentage Of Total Annuities Sold, 2009-12 market Share key Points aviva Remains The Top Annuity Provider By New Ape Premiums figure 29: Top 15 Providers In The Uk Annuity Market, By New Ape Premiums, 2011-12 companies And Products aviva company Description product Range distribution key Data recent Activity prudential company Description product Range distribution key Data recent Activity legal & General company Description product Range distribution key Data Annuities - UK - August 2013
  • 5. recent Activity partnership Assurance (cinven Ltd) company Description product Range distribution key Data recent Activity just Retirement (avallux Sarl) company Description product Range distribution key Data recent Activity brand Communication And Promotion key Points an Active Annuity Market Isn’t Reflected In Falling Adspend figure 30: Above-the-line Consumer Advertising Expenditure On Annuities And Income Drawdown Products, 2011-13 aviva Is The Top Advertiser Of Annuity And Income Drawdown Products figure 31: Top Six Advertisers Of Annuities And Income Drawdown Products, 2011-13 large Increase In Press Adspend As Providers Push The Omo Message figure 32: Advertising Expenditure On Annuities And Income Drawdown Products, By Media Type, 2011-13 a Note On Adspend channels To Market key Points non-advised Annuity Sales Account For 62% Of New Contracts In Q1 2013 figure 33: Volume And Value Of Annuity Sales Using New Abi Reporting Format, Q1 2013 new Annuity Premium Distribution Dominated By Ifas figure 34: New Pension Annuity Premiums, By Sales Channel, 2007-12 advisers Expected To Retain Role In Post-rdr Market distribution Of Income Drawdown savings And Investment Ownership key Points just Over A Quarter Of Those Aged 45+ Are Potential Annuitants figure 35: Savings And Investment Ownership, June 2013 potential Annuitants More Likely To Be Financially Savvy dc Pension Holders Spread Their Risk Amongst Other Savings Products Annuities - UK - August 2013
  • 6. figure 36: Savings And Investment Ownership, By Most Popular Savings And Investment Ownership, June 2013 retirement Funding Plans key Points over-45s Are Expecting Their Pensions To Support Them Through Retirement figure 37: Retirement Funding Plans, June 2013 8% Expect To Use Equity In Home To Boost Retirement Finances consumers With One Type Of Retirement Funding Plan Are Set To Rely On State Pension figure 38: Repertoire Of Retirement Funding Plans, June 2013 multiple Retirement Funding Strategies Reduce The Dependency On Annuity Income figure 39: Savings And Investment Ownership, By Repertoire Of Retirement Funding Plans, June 2013 employment In Retirement Is A Preferred Choice For Some figure 40: Savings And Investment Ownership, By Selected Retirement Funding Plans, June 2013 older People More Likely To Fund Retirement Through Some Form Of Work figure 41: Plans To Fund Retirement Through Some Form Of Employment, By Age annuity Research Options key Points professional Advice Proves Popular For Potential Annuitants figure 42: Annuity Research Preferences, June 2013 only A Minority Expect That They Will Not Research Annuity Options women Are Less Likely To Seek Professional Annuity Advice figure 43: Annuity Research Preferences, By Gender, June 2013 attitudes Towards Annuities key Points flexibility Is Key For Those Looking For A Retirement Income figure 44: Attitudes Towards Annuities, June 2013 lack Of Awareness Over Enhanced Annuity Products advice Seekers And Online Researchers Looking For Flexible Products figure 45: Attitudes Towards Annuities, By Annuity Research Preferences, June 2013 appendix – Market Size figure 46: Value Of New Pension Annuity Business, 2013-18 figure 47: Volume Of New Pension Annuity Business, 2013-18 appendix – Savings And Investment Ownership Annuities - UK - August 2013
  • 7. figure 48: Most Popular Savings And Investment Ownership, By Demographics, June 2013 figure 49: Next Most Popular Savings And Investment Ownership, By Demographics, June 2013 figure 50: Other Savings And Investment Ownership, By Demographics, June 2013 appendix – Retirement Funding Plans figure 51: Most Popular Retirement Funding Plans, By Demographics, June 2013 figure 52: Next Most Popular Retirement Funding Plans, By Demographics, June 2013 figure 53: Repertoire Of Retirement Funding Plans, By Demographics, June 2013 appendix – Annuity Research Options figure 54: Annuity Research Preferences, By Demographics, June 2013 appendix – Attitudes Towards Annuities figure 55: Attitudes Towards Annuities, By Demographics, June 2013 appendix – Market Background And Product Definitions figure 56: Overview Of The Annuity And Retirement Income Market, 2012 single And Joint Life Policies the Open Market Option the Abi Code Of Conduct alternative Solutions ResearchMoz(http://www.researchmoz.us/) is the one stop online destination to find and buy market research reports & Industry Analysis. We fulfill all your research needs spanning across industry verticals with our huge collection of market research reports. We provide our services to all sizes of organizations and across all industry verticals and markets. Our Research Coordinators have in-depth knowledge of reports as well as publishers and will assist you in making an informed decision by giving you unbiased and deep insights on which reports will satisfy your needs at the best price. Contact: M/s Sheela, 90 State Street, Suite 700, Albany NY - 12207 United States Tel: +1-518-618-1030 USA - Canada Toll Free 866-997-4948 Email: sales@researchmoz.us Website: http://www.researchmoz.us/ Annuities - UK - August 2013
  • 8. Annuities - UK - August 2013