The over-60s make up a conservative market, relatively resistant to high consumer spending, but increasingly forced to borrow because many have inadequate pensions.
April 14, 2007 (Press Release) --
Financial Services Marketing to the Over 60s - Market Assessment
STRATEGIC OVERVIEW
The over-60s make up a conservative market, relatively resistant to high consumer spending, but increasingly forced to borrow because many have inadequate pensions.
While a large proportion of pensioner households have low incomes, ironically, the retired account for the majority of wealthy Britons.
Women own well over half of the net capital wealth of the over-65s, despite considerably lower earnings during their working lives - this is the wealthy widow effect.
The affluent elderly are difficult to influence, as they have made up their minds on many issues. They tend to travel extensively beyond the UK and often prefer to place their finances in the hands of companies with global reach.
ANNUITIES
Low annuity rates discourage individuals from investing in pension funds. Most rates fell by over 20% between August 2000 and August 2003.
For people earning less than £11,200 per year, pensions saving under the current regime is not financially worthwhile.
Current low pensions saving is likely to restrict future demand for annuities.
Advertising for annuities is extremely limited. The highest spender in the year ending June 2003 was Britannic Retirement Solutions.
EQUITY-RELEASE PLANS
The equity-release market doubled between June 2002 and June 2003 and could exceed £1bn in new loans for the full year 2003.
Mortgage equity-release plans will be regulated from 2004, although home-income and home-reversion plans will remain unregulated to the detriment of customers.
Competition in the sector is growing. Norwich Union, Prudential, Northern Rock, GE Life and Britannic Retirement Solutions are among the leading providers.
WEALTH MANAGEMENT AND INHERITANCE TAX PLANNING
Conservation of their capital is the top financial priority for pensioners.
The very wealthy, with assets considerably in excess of £255,000, are able to bypass inheritance tax with careful planning; however, future governments are likely to make tax avoidance more difficult.
Older investors who have lost money on precipice bonds are cautious about taking out new investments.
LONG-TERM CARE, LIFE, MEDICAL AND FUNERAL INSURANCE
The long-term care insurance market is still very small. AXA's PPP and BUPA lead the sector.
Self-pay treatment at fixed prices is often more affordable than private medical insurance (PMI) for the over-60s.
Whole-of-life insurance is, at present, an effective means of limiting or avoiding inheritance tax.
For more information, Please visit : http://www.bharatbook.com/detail.asp?id=10013
or email us at : info@bharatbook.com
You can also call us at +91-(022)-2757 8668 or +91-(022)-2757 9131
For searching our huge collection of reports, Please visit :
http://www.bharatbook.com/general/customresearch.asp
STRATEGIC OVERVIEW
The over-60s make up a conservative market, relatively resistant to high consumer spending, but increasingly forced to borrow because many have inadequate pensions.
While a large proportion of pensioner households have low incomes, ironically, the retired account for the majority of wealthy Britons.
Women own well over half of the net capital wealth of the over-65s, despite considerably lower earnings during their working lives - this is the wealthy widow effect.
The affluent elderly are difficult to influence, as they have made up their minds on many issues. They tend to travel extensively beyond the UK and often prefer to place their finances in the hands of companies with global reach.
ANNUITIES
Low annuity rates discourage individuals from investing in pension funds. Most rates fell by over 20% between August 2000 and August 2003.
For people earning less than £11,200 per year, pensions saving under the current regime is not financially worthwhile.
Current low pensions saving is likely to restrict future demand for annuities.
Advertising for annuities is extremely limited. The highest spender in the year ending June 2003 was Britannic Retirement Solutions.
EQUITY-RELEASE PLANS
The equity-release market doubled between June 2002 and June 2003 and could exceed £1bn in new loans for the full year 2003.
Mortgage equity-release plans will be regulated from 2004, although home-income and home-reversion plans will remain unregulated to the detriment of customers.
Competition in the sector is growing. Norwich Union, Prudential, Northern Rock, GE Life and Britannic Retirement Solutions are among the leading providers.
WEALTH MANAGEMENT AND INHERITANCE TAX PLANNING
Conservation of their capital is the top financial priority for pensioners.
The very wealthy, with assets considerably in excess of £255,000, are able to bypass inheritance tax with careful planning; however, future governments are likely to make tax avoidance more difficult.
Older investors who have lost money on precipice bonds are cautious about taking out new investments.
LONG-TERM CARE, LIFE, MEDICAL AND FUNERAL INSURANCE
The long-term care insurance market is still very small. AXA's PPP and BUPA lead the sector.
Self-pay treatment at fixed prices is often more affordable than private medical insurance (PMI) for the over-60s.
Whole-of-life insurance is, at present, an effective means of limiting or avoiding inheritance tax.
For more information, Please visit : http://www.bharatbook.com/detail.asp?id=10013
or email us at : info@bharatbook.com
You can also call us at +91-(022)-2757 8668 or +91-(022)-2757 9131
For searching our huge collection of reports, Please visit :
http://www.bharatbook.com/general/customresearch.asp
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