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LATER LIFE FINANCIAL PLANNING - UK - SEPTEMBER 2018

Published By :

Mintel

Published Date : Sep 2018

Category :

Banking

No. of Pages : N/A

The financial pressures on future retirees pose a big challenge in terms of engaging them with later life planning, as they’re more likely to be concerned about the sufficiency of their pension pot. However, this gives advisers opportunities to discuss different funding options, whilst products that can save people money in the long term are also likely to appeal.

Table of contents
OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Increasing life expectancy makes later life planning more important
Figure 1: Expectation of life for those aged 65 in each year, period principal projection, by gender, UK, 1981-2064
One in five over-50s have no savings
Figure 2: Value of savings and investments, by age, June 2018
Rising funeral costs make it more important to plan in advance
Equity release sales soar
Figure 3: Sales of equity release products, by volume and value, 2011-17
Future of the Pension Dashboard uncertain
FCA’s Ageing Population report offers guidance to firms
Companies and brands
Encouraging conversations around later life
17% increase in later life financial planning adspend in 2017/18
Figure 4: Total above-the-line, online display and direct mail advertising expenditure on later life financial planning products, 2013/14-2017/18
The consumer
Most have thought about their later life financial plans
Figure 5: Consideration of later life financial plans, June 2018
Half feel confident making plans
Figure 6: Confidence in making later life financial plans, June 2018
45% would seek out professional advice
Figure 7: Sources of information about later life financial planning, June 2018
Most aren’t interested in later life products
Figure 8: Ownership and interest in later life financial products, June 2018
Income concerns are a priority
Figure 9: Later life financial priorities, June 2018
Majority want to live in their property for as long as possible
Figure 10: Expectations for future living arrangements, June 2018
52% think financial services providers should do more
Figure 11: Attitudes towards responsibilities for later life financial planning, June 2018
Online platforms can make later life planning easier
Figure 12: Attitudes towards managing and arranging later life finances, June 2018
Increasing life expectancy puts pressure on to plan
Figure 13: Attitudes towards working in retirement, June 2018
What we think
ISSUES AND INSIGHTS
Semi-retirement will delay later life planning
The facts
The implications
Breaking the taboo around later life will encourage planning
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Increasing life expectancy makes later life planning more important
Rising funeral costs make it more important to plan in advance
Equity release sales soar
Future of the Pension Dashboard uncertain
FCA’s Ageing Population paper offers guidance to firms
MARKET ENVIRONMENT
Increasing life expectancy makes later life planning more important
Figure 14: Expectation of life for those aged 65 in each year, period principal projection, by gender, UK, 1981-2064
One in five over-50s have no savings...
…and future retirees could be even more worse off
Figure 15: Value of savings and investments, by age, June 2018
Rising funeral costs make it more important to plan in advance
Majority of long-term care provided at home
Figure 16: Number of over-65s receiving long-term care, 2015/16
Equity release sales soar
Figure 17: Sales of equity release products, by volume and value, 2011-17
Rising internet usage will change how people plan for later life
Figure 18: Percentage of people who had used the internet in the last 3 months, by age, 2011-18
REGULATORY AND LEGISLATIVE CHANGES
Tax changes means couples set to pass on £1 million tax-free by 2020
Future of the Pension Dashboard uncertain
Reforms to Funeral Expenses Payment
Funerals plans providers question need for FCA regulation
CMA launches investigation into funerals
FCA’s Ageing Population report offers guidance to firms
Care for Older People green paper delayed
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Encouraging conversations around later life
17% increase in later life financial planning adspend in 2017/18
COMPETITIVE STRATEGIES
Encouraging conversations around later life
Intergenerational focus can help with later life planning
Lending into later life
ADVERTISING AND MARKETING ACTIVITY
17% increase in later life financial planning adspend in 2017/18
Figure 19: Total above-the-line, online display and direct mail advertising expenditure on later life financial planning products, 2013/14-2017/18
SunLife is biggest spender on later life products
Figure 20: Total above-the-line, online display and direct mail advertising expenditure on later life financial planning products, by advertiser, 2015/16-2017/18
Nielsen Ad Intel coverage
THE CONSUMER – WHAT YOU NEED TO KNOW
Most have thought about their later life financial plans
Half feel confident making plans
45% would seek out professional advice
Most aren’t interested in later life products
Online platforms can make later life planning easier
Increasing life expectancy puts pressure on to plan
CONSIDERATION OF LATER LIFE FINANCIAL PLANS
Most have thought about their later life financial plans…
Figure 21: Consideration of later life financial plans, June 2018
…but only two in five have taken action
Figure 22: Consideration of later life financial plans, by age, June 2018
CONFIDENCE IN MAKING LATER LIFE FINANCIAL PLANS
Half feel confident making plans
Figure 23: Confidence in making later life financial plans, June 2018
Lack of confidence puts people off planning
Figure 24: Confidence in making later life financial plans, by consideration of later life plans, June 2018
SOURCE OF INFORMATION ON LATER LIFE PLANNING
45% would seek out professional advice
Banks and building societies are an easy option
Figure 25: Sources of information about later life financial planning, June 2018
Online guides and assessments can introduce people to later life planning
People are reliant on recommendations from family and friends
Figure 26: Sources of information about later life financial planning, by age, June 2018
OWNERSHIP AND INTEREST IN LATER LIFE PRODUCTS
Most aren’t interested in later life products
Figure 27: Ownership and interest in later life financial products, June 2018
25% are interested in owning a prepaid funeral plan
Changing attitudes mean providers can be more frank about later life planning
LATER LIFE FINANCIAL PRIORITIES
Income concerns are a priority
Figure 28: Later life financial priorities, June 2018
Half want to ensure their will is up to date
Figure 29: Later life financial priorities, by age, June 2018
29% think it’s important to have money aside for long-term care costs
FUTURE LIVING ARRANGEMENTS
Majority want to live in their property for as long as possible
Figure 30: Expectations for future living arrangements, June 2018
Only 9% expect to release equity
A third of 50-57-year-olds expect to downsize
Figure 31: Expectations for future living arrangements, by age, June 2018
RESPONSIBILITIES FOR LATER LIFE FINANCIAL PLANNING
Two thirds think the government should do more…
…but there’s still an expectation of financial services providers
Figure 32: Attitudes towards responsibilities for later life financial planning, June 2018
MANAGING LATER LIFE FINANCIAL PLANS
Online platforms can make later life planning easier
Figure 33: Attitudes towards managing and arranging later life finances, June 2018
Low levels of interest in paid advice
Figure 34: Attitudes towards managing and arranging later life finances, by age, June 2018
LATER LIFE FINANCIAL PLANNING AND RETIREMENT
Increasing life expectancy puts pressure on to plan
Figure 35: Attitudes towards working in retirement, June 2018
55% don’t know when to think about later life financial planning
MPs propose care tax
Figure 36: Attitudes towards working in retirement, June 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

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