2016年-FCA英国金融行为监管局_retirement_income_market_data_july_september_2015_20页_1019kb

Retirement Income Market Data Summary (July – September 2015)

Core Content

This report provides an analysis of retirement income market data collected from a representative sample of 95 pension and retirement income providers in the period July to September 2015. The data reflects the second quarter following the implementation of pension reforms and is used to monitor and assess the impact of these changes on consumer behavior and market dynamics. The findings aim to inform regulatory supervision and future work on retirement outcomes.

Main Points

• Pension Access and Withdrawals:

  • A total of 178,990 pensions were accessed by consumers in the quarter, representing a 13% drop compared to the previous quarter (April to June 2015).
  • 120,969 pensions were fully cashed out, with 88% of these being from small pot pensions (pots below £30,000).
  • 60,600 (34%) of the accessed pensions used UFPLS (Uncrystallised Fund Pension Lump Sum), while 54,604 (30%) used income drawdown.
  • 23,385 (13%) were used to purchase annuities, and 40,401 (23%) were full withdrawals using small pot lump sum payments.
  • 3,381 of the drawdown and annuity figures were used to purchase 3rd way products.

• Guaranteed Annuity Rates (GARs):

  • 68% of GARs were not taken up, with 79% of those in pots below £30,000 and 90% in pots below £10,000 not being taken up.
  • 59% of customers with pots of £30,000 or more took up their GARs.

• Withdrawal Rates:

  • 71% of customers making partial withdrawals took less than 2% of their pot after tax-free cash.
  • 10% took 10% or more of their pot.
  • 27% of customers aged 55-59 took an income of 10% or more of their pot.

• Use of Regulated Advisers and Pension Wise:

  • 58% of drawdown customers used a regulated adviser, compared to 37% of annuity customers.
  • 17% of consumers on average stated they used Pension Wise, increasing to 22% for small pots.
  • 23% of full withdrawal customers used Pension Wise, which is higher than the average.
  • Providers are only required to record use of Pension Wise when regulated advice is not used.

• Provider Choice:

  • 58% of drawdown customers and 64% of annuity customers stayed with their existing provider.
  • UFPLS is primarily a mechanism for accessing pensions within the existing scheme, so 100% of UFPLS payments were from the customer's existing provider.
  • The data may overstate the level of shopping around due to the inclusion of third-party sales.

Key Information

• Market Coverage:

  • The sample covers 95% of defined contribution (DC) contract-based pension schemes.
  • It includes 71 firms and 54 firm groups, with the remaining firms planned to be included in the next quarter.

• Data Limitations:

  • The data from one quarter to the next is not directly comparable due to different samples and question framing.
  • The April to June 2015 annuity data had inaccuracies due to under-reporting, and this may have affected the trend between quarters.

• Consumer Behavior:

  • Small pots dominate in all product types, including GARs not taken up.
  • Age significantly influences withdrawal behavior, with 55-59 year olds taking the highest withdrawal rates.

• Regulatory Implications:

  • The data will inform future regulatory work, including the supervision of firms and the analysis of retirement outcomes.
  • The FCA is using this data to shape regulation and improve consumer access to pension flexibilities.

Summary of Figures

• Figure 1: Consumer choices across products (UFPLS, drawdown, annuities, full withdrawals).
• Figure 2: Distribution of all products and withdrawals.
• Figure 3-6: Consumer choices by age and pot size for each product and UFPLS.
• Figure 7: Annuity options purchased, with most being non-enhanced, single life, level payment annuities.
• Figure 8-9: GAR uptake and full withdrawals by pot size.
• Figure 10: Partial withdrawal rates, with 71% taking less than 2% of their pot.
• Figure 11-14: Adviser use and Pension Wise usage across product types and pot sizes.
• Figure 15: Provider choice, showing 58% of drawdown and 64% of annuity customers stayed with their existing provider.

Conclusion

The July to September 2015 data highlights a decline in pension access post-pension reforms, with a significant portion of withdrawals being from small pots. Consumers are increasingly using UFPLS and drawdown as primary access methods, while annuities remain less popular. The use of regulated advisers is more common among larger pots, and Pension Wise is more frequently used by small pot customers. The majority of consumers remain with their existing provider, suggesting limited market switching in the early stages of pension freedoms.