2020 United Kingdom Pension Income Consumer Research Report: Pensioners & Pension Savers Point of View
DUBLIN, April 15, 2020 /PRNewswire/ -- The "UK Pension Income (Decumulation) Consumer Research Report, 2020" report has been added to ResearchAndMarkets.com's offering.
This report is a consumer research report looking at how individuals generate income from their pensions. This covers the decumulation phase of the pension process. i.e. using the pension to generate income.
This report studies the income generation process from the points of view of two types of consumers:
- Pensioners: i.e. individuals who are currently receiving income from a pension. How did they act when they generated income? Interviews with 294 individuals were conducted.
- Pension Savers: i.e. individuals aged 50+ who currently are saving into a pension and will be taking income over the next decade or so. How do they think they will act in the near future when they come to generate income from the pensions they own? Interviews with 371 individuals were conducted.
For this report, the publisher commissioned research from MIS Group's UK panel. The research was structured so that 2,077 nationally representative consumers aged 18+ were asked about their pension ownership, pension income and their actions.
Partial retirement will become a more important feature of the pension market in the future than it is today. 28% of individuals who are currently receiving income from a pension (i.e. Pensioners) generate some of their income from working, even if part-time, while 44% of consumers aged 50+ who currently are saving into a pension and will be accessing their pensions over the next decade (i.e. Pension Savers) say they are planning to generate income from working, if only part-time, after they access their pensions.
The rise of partial retirement will, in turn, see a rise in the percentage of individuals deciding to convert only some of their pension(s) into cash/income: 51% of Pension Savers aiming for partial retirement (67% if don't know responses are excluded) say they will convert only some of their pension(s) into income/cash when they partially retire.
Other key findings from this report include:
- Workplace pensions are now and will be in the future the prime source of pension income
- Pension freedoms have and will further radically change the pension landscape
- Consumers need professional help before they access their pensions and they show a willingness to consult with professionals before deciding what to do
- Professional help should guide rather than advise
- Innovative, online solutions can help widen professional help
Key Topics Covered
1. Executive Summary
- Introduction
- Almost One-Third of Consumers have or will Decumulate Relatively Soon
- Workplace Pensions the Prime Generators of Pension Income
- But Final/Career Average Pensions become Less Important
- As will Full Retirement
- Meaning Work, along with Property, will become a more Important Income Source
- Pension Freedoms Radically Change the Pension Landscape
- Consumers need Professional help when they Access their Pensions
- Professional help should Guide rather than Advise
- With Consumers Willing to Consult Professionals when they Decumulate...
- Especially if they have DC Pensions
- Online Solutions can help Widen Professional help
2. Introduction
3. Pension Savers vs. Pensioners
- Almost One-Third of Consumers are Covered in the Report
- As Expected, Pensioners are Older than Pension Savers
- Pension Savers are more London-Centric Compared with Pensioners
4. Pensions Past and Present
- Workplace Pensions Dominate the Pension Saver and Pensioner Landscapes
- Final Salary Schemes Declining in Use
- One-In-Five Pension Savers have Decumulated
5. Retirement Plans and Actions: Then and Now
- Compared with Pensioners, Pension Savers are Less Likely to Fully Retire
- The Pension is just One Option on the Menu
- Affluent Pensioners have more Options
- Multiple Income Sources may Explain Why Retirement could be Comfortable for Some
- Guaranteed Income or Personal Control
- Pensioners and Pension Savers Aim to Minimise Tax
- Not All Pension Savings will go into Income Generation
6. Seeking Advice
- Professional Advice and Guidance are Important because Pension Knowledge is Patchy
- Older and Affluent Pension Savers have the most Knowledge
- Pension Savers want to be Guided rather than Advised
- And they are Willing to Seek help when they Decumulate
- And the Good News is that when Pensioners Accessed their Pensions, they also got Professional help
- Pensioners Generally find it Easy to Decide, but DC Pensions are more Problematic
- DC Pensions, Where Decisions can go Wrong
- But Defined Benefit Pension Holders also need to Take Care
- Help is needed in the Early Stages
7. Ways to Improve Knowledge and Decision Making
- Consumers show Interest in Online Advice
- Hybrid Human/Machine Guidance Services the Most in Demand
For more information about this report visit https://www.researchandmarkets.com/r/fe4aee
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