Insight
Title:
Erosion of state benefits and DB pensions means consumers must increasingly self-provide
Description:
Increasing pressure on public debt is resulting in austerity measures, such as cuts in social spending. This will increase the need for the mass market to provide for itself.
At the same time, tax break cuts are reducing the incentives for wealthier clients to invest through more conventional channels.
According to ILAG UKprotection strategy report, December 2015
"Government spending as a percentage of GDP has been increasing, placing pressure on benefit provision and health care. The result will be a greater need to transfer more of the cost of provision to the private sector. Incentives to encourage people to make private provision may be limited as the Government seeks to balance the books."
PESTEL:
Economic
Five Forces:
Bargaining power of buyers