2017年-FCA英国金融行为监管局_retirement_outcomes_review_interim_report_annex2_13页_540kb

Retirement Outcomes Review - Interim Report: Annex 2 Summary

Core Content

Annex 2 of the Retirement Outcomes Review interim report outlines the data collection and analysis methods used by the FCA to evaluate the retirement income market in the UK. The data was collected to monitor the impact of pension reforms and assess the distribution of retirement income products through various channels.

Main Data Sources

• FCA Quarterly Retirement Income Market Data (RIMD): This data includes information on the number of pension pots and customer actions such as annuities, drawdown, UFPLS, and full withdrawals, categorized by pot size, age, and customer type (advised/non-advised, new/existing).
• Distribution Channel Charges Data: A one-off data request from 56 firm groups, with 55 responses received, aimed to understand the charges associated with the distribution of annuities and drawdown products.
• Association of British Insurers (ABI) Data: Used to support the supply-side analysis, covering new and existing customers for annuities and drawdown, and providing a representative sample of the UK insurance market.

Key Findings

Data Usage

• The RIMD data was used to inform the market overview and supply-side analysis.
• The data collection began in July 2015 and was initially collected on a quarterly basis, later adjusted to a six-monthly basis.

Challenges in Data Analysis

• The data refers to the number of pension pots, not individual customers, which may lead to underrepresentation of customers with multiple pots.
• Inconsistent data formats across quarters, such as drawdown and UFPLS data in Q3 2015 and full withdrawals data only in Q2 and Q3 2016, made aggregation difficult.
• Some firms provided incomplete or inaccurate data, leading to gaps and inconsistencies.
• Certain firms had difficulty in splitting sales into impaired and enhanced annuities or separating adviser charges from full advice.

Distribution Channel Analysis

• Sales by Product: Over 170,000 sales were recorded, with drawdown being the most common (80%), followed by annuities (20%) and blended solutions (0.1%).
• Advised vs. Non-advised Sales:
  • Standard annuities were mostly sold through non-advised channels (90%).
  • Non-SIPP drawdown was more likely to be advised (76%).
  • All blended solutions were advised.
• Sales by Distribution Channel:
  • 50% of sales were through IFA (independent financial advisers).
  • 40% were to non-advised existing customers.
• Adviser Charges vs. Commission Charges:
  • For most firms, average commission charges for non-advised sales were not higher than those for advised sales.
  • In some cases, non-advised annuities had higher average costs, but the sample size was too small to draw conclusions.

ABI Data Insights

• The ABI data covers 90% of the UK insurance market and is collected quarterly.
• A comparison between ABI and RIMD data shows that 87% of annuity sales and 75% of drawdown sales in RIMD are from ABI members, indicating sufficient market representation.

Summary of Key Tables

Table 1: Summary of Data Used

• Flow Data: Includes annuities, drawdown, UFPLS, and full withdrawals, split by pot size, age, and customer type.
• Stock Data: Covers uncrystallised and crystallised data, including the number of plan holders and total asset values.

Table 2: Summary of Data Collected

• Qualitative Information: Product options, firm value chain, and associated charges.
• Quantitative Information: Commission and adviser charges by pot size, annuity rates for specific scenarios, and introducer fees.

Table 3: Comparison of RIMD Sales by ABI Members vs. Whole RIMD Sample

• New Drawdown Sales:
  • Non-advised: 71% from ABI members.
  • Advised: 76% from ABI members.
  • Total: 75% from ABI members.
• New Annuity Sales:
  • Non-advised: 84% from ABI members.
  • Advised: 94% from ABI members.
  • Total: 87% from ABI members.

Conclusion

The data collection and analysis in Annex 2 provide valuable insights into the distribution of retirement income products in the UK, highlighting the dominance of drawdown over annuities and the significant role of non-advised channels. Despite challenges in data consistency and completeness, the FCA concludes that the data is sufficiently representative to inform its review.