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 - 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 1:21.72 in 2015-16, meaning that £21.72 is spent on labour for every £1.00 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