Dublin, Nov. 13, 2020 (GLOBE NEWSWIRE) — The “United Kingdom (UK) Post – Retirement Pensions Market 2020” report has been added to ResearchAndMarkets.com’s providing.
This report explores traits in the way in which people fund their life-style in retirement. It examines pension decumulation and offers particulars on the way in which pension plans are accessed for the primary time, exploring variations by pension pot dimension. Present and historic information on the dimensions of widespread retirement revenue merchandise is supplied.
The report additionally discusses to what extent people are assured that their lifetime investments will final by means of retirement. As well as, it explores customers’ attitudes and behaviors close to acquiring monetary recommendation on pensions.
Sometimes, retirees complement the state pension with different sources of revenue, akin to office and personal pensions. Pension freedoms guidelines allow over 55s to entry their pensions flexibly, however many are inadvertently placing their long-term financial savings in danger. Nearly all of adults will entry their pension funds as quickly as they’ll.
Actually, greater than half of all pension pots are withdrawn totally when they’re accessed for the primary time. Unexpectedly, withdrawals from pension pots fell within the first half of 2020 regardless of fears that COVID-19 would immediate people to take extra funds. As financial uncertainty continues, an increase in unemployment amongst older adults might push some into early retirement.
- 9 in 10 people state that their life-style in retirement is as anticipated or higher.
- Revenue drawdowns totaled 9.3bn pound in new premiums in 2019, nearly double the dimensions of the annuities market at 4.3bn pound.
- 91.9% of retirees are assured that their pension funds and/or financial savings will final their total lifetime. This perception is broadly unchanged by the outbreak of COVID-19.
Causes to Purchase
- Find out how people entry their pension plans for the primary time.
- Perceive the dimensions of revenue drawdowns and the annuities market.
- Discover the gender hole in state and personal pensions.
- Uncover to what extent over 55s and retirees use monetary recommendation on pensions.
- Perceive the impression of COVID-19 on the post-retirement market.
Key Subjects Lined:
1. EXECUTIVE SUMMARY
1.1. Many people are placing their long-term financial savings in danger
1.2. Key findings
1.3. Vital success components
2. RETIRING AND CLAIMING THE STATE PENSION
2.1. Most adults retire as soon as they’ll entry the state pension
2.1.1. The SPA has risen to 66 and there are plans to extend it additional
2.1.2. Most wait till they’ll entry the state pension earlier than they retire
2.1.3. COVID-19 might pressure older people into early retirement
2.2. The state pension is inadequate to dwell comfortably on and there’s a gender pay hole
2.2.1. The UK’s state pension isn’t sufficient to dwell comfortably on
2.2.2. The gender hole has narrowed however nonetheless exists
2.2.3. COVID-19 has introduced the state pension’s triple-lock mechanism into the limelight
2.2.4. Some people noticed their pension decreased following the tip of the ADI
2.2.5. Single people want not less than 10,200 every year at retirement to cowl all bills
2.2.6. By itself, the state pension is not less than 2,062.26 kilos every year too low to allow retirees to pay all their bills
2.3. Brexit uncertainty and COVID-19 create a dilemma for people planning to retire overseas
2.3.1. People are having second ideas about retiring overseas owing to Brexit and COVID-19
2.3.2. Brexit negotiations will have an effect on UK pension eligibility
3. FUNDING RETIREMENT AND LIFESTYLE
3.1. Retirement revenue usually comes from a number of sources
3.1.1. The state pension is essential to funding retirement, however private pensions are widespread
3.1.2. Greater than half of all people with retirement incomes in extra of fifty,000 every year dwell on non-public/firm pensions solely
3.1.3. Girls have decrease incomes in retirement than males
3.2. Retirees trust that their funds will final by means of retirement
3.2.1. Life-style in retirement is as anticipated for almost all of people
3.2.2. Most retirees don’t evaluation their finances steadily
3.2.3. People are assured that their pensions/financial savings will final by means of retirement
3.2.4. Confidence that pensions/financial savings are sufficient to final a whole lifetime has been broadly unaffected by COVID-19
4. TRENDS IN PENSION DECUMULATION
4.1. Retirees usually have DB pensions, however DC schemes have gotten extra widespread
4.1.1. DB schemes are the most typical kind of office pensions amongst over 40s
4.2. Pension freedoms give DC scheme members flexibility in how funds are accessed
4.2.1. New plans are underway to extend the pension freedoms age to 57
4.2.2. DB to DC transfers have been widespread as people reap the benefits of pension freedoms
4.3. Most over 55s have sizable pension pots, however the majority will entry funds as quickly as they’ll
4.3.1. Most over 55s have sizable pension pots
4.3.2. Solely a minority of people defer taking their pension so it pays extra later, whereas most entry their pots as quickly as they’ll
4.4. Accessing pensions for the primary time
4.4.1. Full money withdrawal is the primary approach of accessing pension pots for the primary time
4.4.2. Full money withdrawals are linked to small pension pots whereas drawdowns are linked to bigger pots
4.4.3. Most pension withdrawals are invested into financial savings accounts
4.5. Revenue drawdowns and annuity gross sales have stabilized
4.5.1. The impression of pension freedoms has light
4.5.2. The worth withdrawn from pensions fell within the first half of 2020 regardless of fears that COVID-19 would lead to a potential spike
4.5.3. Annuity charges reached a historic low in September 2019
5. FINANCIAL ADVICE IN THE POST-RETIREMENT MARKET
5.1. Retirement is a typical motive for searching for monetary recommendation, but uptake is blended
5.1.1. Retirement is without doubt one of the foremost causes prompting customers to hunt monetary recommendation
5.1.2. Half of all pension plans are accessed with out recommendation
5.1.3. Uptake of the Pensions Recommendation Allowance is low
5.1.4. Retirees are much less more likely to search monetary recommendation on pensions than different adults
5.1.5. Non-retired adults have a tendency to interact with their advisor on pensions extra usually than retirees as they discover their choices
5.1.6. Popularity and an current relationship with the advisor are key issues amongst over 55s searching for monetary recommendation
5.2. Dangers behind pension freedoms and lack of recommendation stay a priority
5.2.1. Enhanced steering on pension drawdowns and transfers amid COVID-19
5.2.2. Early drawdowns imply pension funds might final much less and restrict future contributions
5.2.3. PLSA launches name to enhance pension freedoms steering
5.2.4. Beforehand, the FCA had launched a number of treatments to enhance retirement outcomes
5.3. The trade is engaged on bettering consciousness of pension revenue at retirement
5.3.1. The Pensions Administration Institute launched Retirement Issues to supply monetary schooling on pensions to people exploring their retirement choices
5.3.2. The Cash Recommendation Service launched a beta revenue drawdown software
Firms Talked about
- Canada Life
- Commonplace Life
- Hodge Lifetime
- Authorized & Common
- Scottish Widows
- Pension Clever
- Wealth at Work
- Cash Recommendation Service
For extra details about this report go to https://www.researchandmarkets.com/r/93ps2p
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