Industry Analysis & Industry Trends
The Pension Funding industry gives those that no longer work an income. The UK pension system comprises a mandatory state component and a private component, but the Pension Funding industry excludes the state pension system. The industry has endured challenging conditions over the past five years. Since the onset of the financial crisis in 2008, financial markets have remained highly volatile, resulting in investment returns fluctuating. At the same time, voluntary contributions have fallen. Despite these pressures, industry revenue – calculated as the change in investment income plus contributions – is expected to increase at a compound annual rate of 4.8% over the five years through 2013-14... purchase to read more
Industry Report - Industry Investment Chapter
The Pension Funding industry is estimated to have a low level of capital intensity, measured by the capital-to-labour ratio. This ratio is estimated to be 1:23.0 in 2013-14, meaning that £23.00 is spent on labour for every pound spent on capital. IBISWorld research shows that the level of capital intensity has remained low over the past five years.
The primary focus of capital expenditure in the industry is information and communication technologies. This has enabled pension funds to automate a large number of labour-intensive administrative functions.
Although the industry has a low level of capital intensity, labour is also a relatively small expense to pension funds... purchase to read more