United Kingdom (UK) Post - Retirement Pensions Market 2020

United Kingdom (UK) Post - Retirement Pensions Market 2020

  • October 2020 •
  • 51 pages •
  • Report ID: 5982722 •
  • Format: PDF
United Kingdom (UK) Post - Retirement Pensions Market 2020

Summary
This report explores trends in the way individuals fund their lifestyle in retirement.It examines pension decumulation and provides details on the way pension plans are accessed for the first time, exploring differences by pension pot size.

Current and historical data on the size of common retirement income products is provided.The report also discusses to what extent individuals are confident that their lifetime investments will last through retirement.

In addition, it explores consumers’ attitudes and behaviors with regards to obtaining financial advice on pensions.

Typically, retirees supplement the state pension with other sources of income, such as workplace and private pensions.Pension freedoms rules enable over 55s to access their pensions flexibly, but many are inadvertently putting their long-term savings at risk.

The majority of adults will access their pension funds as soon as they can.In fact, more than half of all pension pots are withdrawn fully when they are accessed for the first time.

Unexpectedly, withdrawals from pension pots fell in the first half of 2020 despite fears that COVID-19 would prompt individuals to take more funds. As economic uncertainty continues, a rise in unemployment among older adults could push some into early retirement.

Scope
- Nine in 10 individuals state that their lifestyle in retirement is as expected or better.
- Income drawdowns totaled £9.3bn in new premiums in 2019, almost double the size of the annuities market at £4.3bn.
- 91.9% of retirees are confident that their pension funds and/or savings will last their entire lifetime. This belief is broadly unchanged by the outbreak of COVID-19.

Reasons to Buy
- Learn how individuals access their pension plans for the first time.
- Understand the size of income drawdowns and the annuities market.
- Explore the gender gap in state and private pensions.
- Discover to what extent over 55s and retirees use financial advice on pensions.
- Understand the impact of COVID-19 on the post-retirement market.
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