Industry Analysis & Industry Trends
The Pension Funding industry provides an income for those that no longer work. 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 volatile conditions over the past five years. Financial markets have been turbulent since the onset of the financial crisis in 2008, so investment returns have fluctuated considerably. At the same time, voluntary contributions have come under pressure from rising unemployment and falling real incomes. However, automatic enrolment in pension schemes, which was introduced in October 2012, positively influenced contributions... 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 1:21.75 in 2014-15, meaning that £21.75 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