Investor Presentaiton
Market Overview: Market Dynamics & Key Trends
UK Pensions market is in transition
All employers must now provide access to pension for employees
Legacy DB is in rapid decline: DC is in growth
Auto-enrolment (AE) maturing following period of rapid growth
Exponential growth in AE AUM due to mandated increase
in contributions
Increasing shift from single trust to Master Trust
Significant legacy pension deficit remains
DC is maturing
99%
of FTSE 350
only offer new
hires DC
provision
Over the past
10 years
Average scheme funds under
management have grown
x5
Contributions to DC
FTSE 100
arrangements have increased x4
FTSE 100 median annual contributions FTSE 100 median DC plan assets
2018
£5 million
£22 million
x4
2018 2008
£36 million
£179 million
x5
DB closure is continuing
For the first time,
more than half of
FTSE 100 companies
now only offer DC to
all staff, for FTSE
250 companies the
percentage is more
than two-thirds
Since 2015 FTSE 100
companies closing to future
accrual for existing members
has increased by 50%, from
29% to 44%
For the FTSE 250 the change
is less dramatic but a higher
proportion of companies only
offer DC at 70%
2015
Member transfers are accelerating
⚫ Significant
increase in DC
due to AE &
transfers out
of DB
⚫ Use of Master
Trust doubles
from 2015 from
8% to 18% with
>1/3rd of
Employers
actively
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considering
0
2008 2009
2010 2011 2012 2013 2014 2015 2016 2017
Defined Contribution
Defined Benefit
18 June 2019
44%
29%
2018
37%
40%
2015
2018
Asset transfers are increasing
⚫ Trend for asset profile shift from DB to DC expected to continue
Corporate DC
2030
4000
3500
3000
Corporate DB
2500
2000
2009
1500
1000
500
2005
2006
2007
2008
2010
2011
2012
2013
2014
2015
25:75 mix
910Z
2017
2019
2018
2019
219
50:50 mix
E.
2020
2021
2022
2023
2024
2025
9Z0Z
2027
Link Group Investor Presentation & Strategy Update
8Z0Z
2029 ܕ
2030
2030
95:5 mix
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