Industry Analysis & Industry Trends
The Pension Funding industry provides an income for those that no longer work. Although the UK pension system comprises both a mandatory state component and a private component, the Pension Funding industry excludes the state pension component. Industry revenue, which is calculated by combining contributions and investment returns, increased over the past five years having declined during the start of the period. Contributions declined during the first year of the period on account of high levels of unemployment and falling real incomes. However, contributions increased during the following years, fuelled by the phased introduction of automatic enrolment in pension schemes, which began in October 2012... purchase to read more
Industry Report - Starting a New Business Chapter
The Pension Funding industry has moderate barriers to entry. Barriers are higher for occupational schemes, which require employees to make contributions.
Economies of scale
Scale is important in the industry. Larger funds enjoy substantial economies of scale with regards to investment options and fund expenses. These funds have the capacity to invest in asset classes such as commercial property and alternative investments, which may be beyond the reach of smaller funds. Larger pension funds also exhibit lower average costs per member given that fixed costs can be distributed more evenly, as opposed to smaller funds that cannot spread the burden of managing a pension fund as successfully as a larger fund... purchase to read more