Seizing the Global HNW Pension Opportunity

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

5.2 million HNW investors are of retirement age and 3.9 million HNW individuals will gain access to their pension assets within the next 10 years, freeing up a significant amount of wealth locked up in pension products. Being able to provide pre-retirement advice as well as advice on transition strategies will be critical, given increased churn rates when investors retire. However, only 65% of providers in the HNW space offer pension and retirement planning advice, predominately via partnerships.

On the flipside, 64% of wealth managers report strong HNW demand for pension planning globally. Yet demand varies considerably on a country-by-country basis due to various factors, such as the sophistication of the local pension system, cultural factors, trust in the government, the role of employers, and the makeup of the local HNW market.

Drawing on our proprietary research, this report provides insight into the HNW pension and retirement market across 20 key markets. In particular, it examines the drivers behind pension investments now and over the next 12 months.

Scope

– Globally, 36% of HNW wealth is held via some form of pension funds or accounts. 43% of this share is allocated to traditional pension funds.

– Taxes are the main pension driver in the HNW space, with tax advantages for passing on wealth accounting for 16% of allocations and tax advantages for current income accounting for 13%.

– Private pension penetration rises with affluence. More than two thirds of mass affluent individuals hold private pension products, compared to 44% among those in lower asset bands.

Reasons to Buy

– Learn about current HNW demand for pension investments and the types of pensions sought.

– Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investment drivers.

– Learn how and why HNW investment preferences will change over the next 12 months.

– Understand how demand patterns change across different levels of affluence in order to target segments more effectively.

– Understand how pension product penetration differs across countries to identify key target markets.

Wealthfront
Zuper
Charles Schwab
Equip

Table of Contents

Table of Contents

1. EXECUTIVE SUMMARY

1.1. Market summary

1.2. Key findings

1.3. Critical success factors

2. SIZING THE HNWPENSION OPPORTUNITY

2.1. The

5.2 million HNW investors who are of retirement age present a lucrative opportunity

2.1.1. Many HNW investors already have access to their pension assets

2.1.2. The opportunity is not spread equally across the globe

2.2. 31.6% of HNW individuals will be of retirement age within the next 10 years

2.2.1. 3.9 million HNW individuals will gain access to their pension assets within the next 10 years

2.2.2. Offering pension advice is critical in China due to the massive pre-retirement demographic

3. HNW PENSION PLANNING DEMAND AND PROVISION

3.1. Offering pension advice is critical as more players enter the market

3.1.1. 65% of wealth managers in the HNW space offer pension and retirement planning, but many do so via partnerships

3.1.2. New entrants pose an additional threat to assets under management

3.2. Demand for pension planning services varies considerably across countries

3.2.1. A lack of trust in the government and the economy underpins HNW demand for international pensions in South Africa

3.2.2. German HNW investors regard pension planning as an integral part of the wealth planning process as they believe theRiester and Rüruppensions to be insufficient

3.2.3. The prevalence of SMSFs provides a significant opportunity in Australia

3.2.4. The sizable number of HNW expats living in the Philippines will appreciate international pension advice

3.2.5. Pension advice in the HNW space cannot ignore the sizable entrepreneur segment

4. HNW PENSION INVESTMENT DRIVERS

4.1. Convenience and tax considerations are driving demand for pension products

4.2. Tax considerations are the number one driver for pension advice

4.2.1. Pension, tax, and inheritance planning go hand in hand

4.2.2. Passing on wealth in a tax-efficient way is also a driver in countries with no inheritance taxes

4.2.3. Tax advantages for current income are critical in high-tax France

4.3. The convenience of a readymade pension portfolio represents a strong draw for HNW investors

4.3.1. However, one strategy does not fit all

4.3.2. Chinese providers looking to attract pension assets need to focus on the convenience aspect

4.4. Other drivers include compulsory contributions, advisor recommendations, and low costs

4.4.1. The comparatively low importance of compulsory contributions as a pension driver suggests that HNW pension allocations significantly exceed the required minimum

4.4.2. HNW investors do not tend to rely on advisors for pension advice

4.4.3. Lower costsare only a minor driver, butthe emergence of new business models will apply cost pressures

5. GLOBAL PRIVATE PENSION PENETRATION

5.1. Private pension product penetration rises with level of affluence

5.1.1. 67.6% of mass affluent individuals hold private pension products

5.1.2. Private pension penetration peaks among Generation X, but millennials represent the next big opportunity

6. APPENDIX

Table

List of Tables

Table 1: Total asset range table for Australian SMSFs, 2016-17

Table 2: Why do HNW clients invest via a pension product/scheme, as opposed to other investments?, 2019 (1 of 2)

Table 3: Why do HNW clients invest via a pension product/scheme, as opposed to other investments?, 2019 (2 of 2)

Figures

List of Figures

Figure 1: In the US, 2.8million HNW individuals are of retirement age – accounting for the bulk of the region’s opportunity

Figure 2: Almost a third of HNW individuals globally will reach retirement age within the next decade

Figure 3: HNW demand for pension planning is particularly pronounced in South Africa and New Zealand

Figure 4: German HNW investors are looking for sophisticated pension products

Figure 5: Tax considerations are a major driver of HNW pension allocations

Figure 6: Inheritance tax considerations are an important pension product driver in the UK

Figure 7: While underutilized,reducing income tax liabilities is the main driver for pension investments in France

Figure 8: Convenience as a driver for pensions is of particular importance in developing markets

Figure 9: Compulsory contributions are a key factor in most of the surveyed countries

Figure 10: Private pension penetration rises with affluence

Figure 11: Retirement savings are a major concern for Canadian investors

Figure 12: Zuper pursues a crowd-powered strategy to differentiate itself among millennial investors

Figure 13: Globally 57.4% of GenerationX hold private pension products

Figure 14: Millennials show strong interest in banking apps that allow access to non-traditional services

Frequently asked questions

Seizing the Global HNW Pension Opportunity standard reports
Currency USD
$5,250

Can be used by individual purchaser only

$15,750

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

Seizing the Global HNW Pension Opportunity was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Financial Services
New
Peru Insurance Industry - Key Trends and Opportunities to 2028
$1,450 | May 2024
Financial Services
New
Apple Pay - Competitor Profile
$350 | June 2024
Financial Services
New
Luxembourg PESTLE Insights - A Macroeconomic Outlook Report
$500 | June 2024
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Seizing the Global HNW Pension Opportunity in real time.

  • Access a live Seizing the Global HNW Pension Opportunity dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.