UK retirement: The forces reshaping pensions

With regulatory changes and demographic shifts sparking significant growth in certain pension products, we expect accumulation and decumulation assets to continue to increase over the next decade. 

While this may sound resoundingly positive for the incumbent pension providers, there are other factors which threaten traditional business models. Increased digital engagement, greater customer data availability, and the increased willingness among customers to use FinTech services mean there are not only challenges from disruptors, but significant opportunities for those that can adapt. 

To capture a greater share of the retirement market, pension providers need to work independently and with employers to improve engagement with customers, simplify propositions and reduce the cost of advice. Those who can respond the fastest will be best placed to secure the long-term rewards available from the UK retirement market.

Ultimately, firms must consider strategic, transformational changes to their pension offerings if they are to capitalise on the expected market growth.