Defining impact: Automatic enrolment and defined contribution schemes supported growth

The industry only includes private pensions and excludes state pensions. Industry revenue, which is calculated by combining contributions and investment returns, increased over the past five years. The increase in contributions was fuelled by the phased introduction of automatic enrolment in pension schemes, which began in October 2012. Unemployment levels also fell, increasing contributions to occupational pension schemes. Meanwhile, investment income grew over the period, despite some volatility, aided by significant quantitative easing activity. The fall in value of the pound also boosted equity values in 2016-17, and contributed positively. Revenue is expected to increase at a compound annual rate of 5.4% over the five years through 2018-19 to reach £152 more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has been supported by auto-enrolment and increased investment income
  • The introduction of automatic enrolment has boosted contributionsover the past five years
  • Investment markets are expected to continue to be affected by prevailing geopolitical tensions
  • Industry Report - Industry Key Buyers Chapter

    The level of concentration in the Pension Funding industry is low, because the top four players are estimated to account for only 9.9% of the industry's total assets under management. The level of concentration has remained low over the past five years. The largest pension fund in terms of assets under management is the Universities Superannuation Scheme. Each of the top four funds account for only a small portion of the industry, and none have a share of more than 5% in terms of assets under management.The level of concentration is expected to increase marginally over the next five-year period. This is partly due to the introduction of automatic enrolment in October 2012, which made employers contributions mandatory. Pot...purchase to read more.

    Additional Insights for the Pension Funding Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Pension Funding Industry are

  • Economies of scale
  • Economies of scope
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as FTSE 100 and year bond rate in the Pension Funding industry impact industry performance..

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    What's in this report

    What is the Pension Funding Industry?

    The Pension Funding industry provides retirement benefits for people no longer earning an income. The industry includes both occupational and personal pension schemes. State pensions are excluded from this industry.

    Industry Products
  • Defined benefit schemes
  • Defined contribution schemes
  • Industry Activities
  • Operating occupational pension schemes
  • Operating personal pension schemes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • FTSE 100
  • year bond rate
  • Gross national savings rate
  • National unemployment rate
  • Population aged 65 years and over

  • Current Performance
  • Investment income
  • Contributions rise
  • Profit margins
  • Structural changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Pension contributions
  • Investment income
  • Profitability
  • Pension legislation changes
  • Table: Pension Funding Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Pension Funding Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Insurance Agents & Brokers
  • Consumers

  • Key Selling Industries
  • Fund Management Activities
  • Life Insurance
  • Other Activities Auxiliary to Insurance and Pension Funding

  • Products & Services
  • Defined benefit schemes
  • Defined contribution schemes
  • Chart: Pension Funding Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Occupational pension schemes
  • Personal pension schemes
  • Chart: Major Market Segmentation for the Pension Funding Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    Net growth (profit)Benefit paymentsWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Pension Funding

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Pension Funding Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Pension Funding Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Pension Funding Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Total Assets (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Any payment made to beneficiaries.
  • Contribution
  • Money paid into pension schemes by employees and employers.
  • Defined Benefit Scheme
  • A pension scheme under which benefits are determined by the member's salary and the length of their tenure upon retirement.
  • Defined Contribution Scheme
  • A pension scheme under which benefits are determined by the value of assets when members retire.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Pension Funding market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

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    This report on Pension Funding:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Pension Funding market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Pension Funding, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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