The attraction of the UK wealth management market?

The UK, like many other countries, has a growing ageing population in need of saving for their retirement - thus, there is a need for advice.

According to Aviva, the UK wealth market worth £1.6 trillion in 2020 is expected to grow 7% a year to £2.1 trillion by 2024. By 2039 it says that the demand for advice will grow because a quarter of the population will be over the age of 65.

The retirement and pensions market in the UK is attractive due to the demographics but also due to reforms that date back to 2014 and which ended the requirement for people to use their pension pots to buy an annuity to provide a guaranteed income in retirement.

Instead, people are free to invest their savings as they see fit, which clearly represents an opportunity to provide advice on what to do and execute on that.

In addition, the UK has a complicated tax and savings landscape - thus adding to the opportunity.

The consequence is an industry full of high margins - an attractive pull for M&A, investors, private equity and the like.

Alison Ebbage Editor-In-Chief

alison@thewealthmosaic.com