|
Published by: Mintel International Group Ltd.
Published: Nov. 1, 2007
Table of Contents
- Issues in the Market
- Main findings of the research
- Abbreviations
- Market in Brief
- A variety of factors are driving demand for children’s savings
- The children’s savings market has grown in the last few years
- Trade perspective: CTF has raised the profile of children’s savings
- Mintel’s research findings: Product ownership
- Mintel’s research findings: Attitudes towards saving for children
- Mintel’s research findings: Targeting opportunities
- Broader Market Environment
- Key points
- The fertility rate now stands at its highest level in 26 years
- Figure 1: Total fertility rate in the UK, 1960-2006
- The total number of children in the UK is projected to rise
- Figure 2: UK population projections, by age, 1997-2027
- Household patterns have changed considerably in last few decades
- Figure 3: Households, by type of household and family, Great Britain, 1971-2006
- The growth of the lone parent
- Figure 4: Dependent children, by family type, Great Britain, 1972-2006
- Lone-parent families tend to save less than couple families
- Figure 5: Distribution of savings, by family status and amount of savings, 2005/06
- The overall savings ratio remains at an historically low level
- Figure 6: Personal disposable income, consumer expenditure and the savings ratio, 2002-12
- Any further rise in Child Benefit would also have a positive impact
- Figure 7: Rates of Child Benefit, 1995-2007
- Pocket money trends could also boost children’s savings
- Heightened need for children to save will boost the market
- A farewell to alms
- The pension problem
- The housing problem
- Internal Market Environment
- Key points
- The CTF is having a major impact on children’s savings market
- The low-down on the CTF
- This initiative will inevitably boost the number of child savers
- The CTF could become a catalyst for developing a savings culture
- CTF success could dampen demand for ‘traditional’ products
- Low nominal interest rates tend to constrain deposit-based growth
- Figure 8: Bank of England base rate, end of quarter, 1972-2007
- A strong stock market has boosted equity-based products…
- Figure 9: FTSE 100 index, last working day of each month, 1994-2007
- … but market turbulence could hit future sales
- Competitive Context
- Key points
- Standard savings products are sometimes used to save for children
- Adult savings and debt repayments could hit children’s savings
- Presents could also be classed as a ‘competitor’
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Market Size and Forecast
- Key points
- Almost 13 million adults hold savings products for a child
- Figure 10: Estimated number of adults owning children’s savings and investment products, 2003 and 2007
- On the downside
- 3 million CTF accounts have now been opened…
- Figure 11: Number of Child Trust Fund vouchers issued and accounts opened by parents, 2005-07
- …but plenty of parents have left it to the experts
- Three quarters of all CTF accounts are stakeholder versions
- Figure 12: Child Trust Fund breakdown, by type of account and asset value, April 2007
- One in four CTF accounts have received extra contributions
- Figure 13: Child Trust Fund contributions, by account type, April 2007
- More than a fifth of CTF accounts are worth £600 or more
- Figure 14: Child Trust Fund market values, by account type, April 2007
- The total amount saved on behalf of children is around £11 billion
- Forecast
- Assumptions
- Potential to bring 3.5 million new savers into the market
- Figure 15: Market forecast for children’s savings products, 2003-2011
- Two key target groups
- Figure 16: Identified target groups within total population, 2007
- How the 3.5 million potential future savers were estimated:
- Market Share
- Key points
- Family Investments is the leading provider of CTF accounts
- Family Investments - a look at the leader
- The Children’s Mutual
- Four providers account for six in ten children’s savings accounts
- Companies and Products
- Key points
- The children’s savings market covers a diverse product range
- Child Trust Fund accounts
- Savings deposit accounts
- National Savings & Investments products
- Tax-exempt children’s savings plans
- Other equity-based products
- Pensions
- A broad range of organisations operate within this sector
- The mutual sector accounts for the majority of CTF providers
- Figure 17: List of organisations approved to provide CTF accounts, September 2007
- Brand Communication and Promotion
- Key points
- The government has spent almost £11 million promoting the CTF
- A major campaign
- Figure 18: Total amount spent by the government on advertising the CTF, by media type, 2004/05-2006/07
- From small seeds…
- Total industry adspend amounted to £1.2 million in last 12 months
- Figure 19: Advertising expenditure on children’s savings and investment products, 2002/03-2006/07
- Declining spend
- The press accounts for the largest proportion of expenditure
- Figure 20: Advertising expenditure on children’s savings and investment products, by media type, 2005/06 and 2006/07
- Investment firms top the children’s savings adspend chart
- Figure 21: Advertising expenditure on children’s savings and investment products, by organisation, 2005/06 and 2006/07
- A friendly word in your ear
- Channels to Market
- Key points
- Various channels are used to distribute children’s savings products
- Some CTF providers work with a wide array of distributors
- Figure 36: List of CTF distributors, by provider organisation they are working with, September 2007
- Affinity partnerships can be used to generate new custom
- The Internet is becoming an increasingly important channel
- The Consumer - Product Ownership
- Key points
- Survey background
- One in eight consumers regularly save for their own children
- Figure 37: Frequency of saving or investing for children, by relationship to child, July 2007
- A total of 15 million adults are saving for a child’s future
- Figure 38: Proportion of adults saving or investing for children, July 2007
- Figure 39: Profile overview of adults saving or investing for children, July 2007
- C2 aspirations
- Family savings analysis
- Figure 40: Frequency of saving or investing for own children by parents at the family lifestage, by gender, age, socio-economic group, income and newspaper readership, July 2007
- CTF accounts are the most commonly held children’s products
- Figure 41: Types of saving and investment products held for or on behalf of children, July 2007
- Deposit-based savings
- Three quarters of parents with under-5s hold a CTF account
- Figure 42: Types of saving and investment products held for or on behalf of children, by age of own children in household, July 2007
- The CTF effect
- NS&I products are a popular choice with grandparents
- Figure 43: Types of saving and investment products held for or on behalf of children, by relationship to child, July 2007
- The Consumer - Attitudes towards Saving for Children
- Key points
- A large majority of adults feel children need to have savings
- Figure 44: “It is essential children have savings for when they are older”, July 2007
- All those against
- Here’s to absent presents
- Figure 45: “It is a good idea to spend less on presents and instead save more for the future”, July 2007
- The present profile
- Most respondents feel the CTF will encourage parents to save
- Figure 46: “The Child Trust Fund will help parents get into the savings habit”, July 2007
- Hitting the gaps in the market?
- Most families with young children have faith in the CTF
- The CTF is also expected to get children into the savings habit
- Figure 47: “The Child Trust Fund will help children get into the savings habit”, July 2007
- Creating a savings habit among non-savers?
- Most mid-income households feel the CTF will boost savings
- Appendix
- Proportion of adults saving for children
- Figure 55: Proportion of adults saving or investing for children, by gender, age, socio-economic group and age/socio-economic group, July 2007
- Figure 56: Proportion of adults saving or investing for children, by lifestage, Mintel’s Special Groups, detailed family lifestage and marital status, July 2007
- Figure 57: Proportion of adults saving or investing for children, by working status, income, TV region and newspaper readership, July 2007
- Product ownership
- Figure 58: Types of saving and investment products held for or on behalf of children, by gender, age, socio-economic group and TV region, July 2007
- Figure 59: Types of saving and investment products held for or on behalf of children, by lifestage, Mintel’s Special Groups, working status and income, July 2007
- Importance of children’s savings
- Figure 60: “It is essential children have savings for when they are older”, by gender, age, socio-economic group and age/socio-economic group, July 2007
- Figure 61: “It is essential children have savings for when they are older”, by TV region, income, lifestage and detailed family lifestage, July 2007
- Presents or cash?
- Figure 62: “It is a good idea to spend less on presents and instead save more for the future”, by gender, age, socio-economic group and age/socio-economic group, July 2007
- Figure 63: “It is a good idea to spend less on presents and instead save more for the future”, by TV region, income, lifestage and detailed family lifestage, July 2007
- Impact on parents’ savings habits
- Figure 64: “The Child Trust Fund will help parents get into the savings habit”, by gender, age, socio-economic group and age/socio-economic group, July 2007
- Figure 65: “The Child Trust Fund will help parents get into the savings habit”, by TV region, income, lifestage and detailed family lifestage, July 2007
- Impact on children’s savings habits
- Figure 66: “The Child Trust Fund will help children get into the savings habit”, by gender, age, socio-economic group and age/socio-economic group, July 2007
- Figure 67: “The Child Trust Fund will help children get into the savings habit”, by TV region, income, lifestage and detailed family lifestage, July 2007
- Attitudes towards saving for children
- Figure 68: Level of agreement with various statements relating to saving for children, July 2007
- Figure 69: Level of agreement with various statements relating to saving for children, by relationship to child, July 2007
AbstractDuring the last few years, the children’s savings market has become an increasingly prominent sector of the financial services industry. The advent of the Child Trust Fund (CTF) has undoubtedly been the catalyst that has raised the profile of children’s savings, both across the consumer base in general and within the financial services market in particular.
The next few years are sure to see further developments within this market that should facilitate further innovation in terms of product development, branding and distribution as children’s savings providers compete for an increased share of this growing market.
This report provides an assessment of recent trends within this sector. It considers the prospects for future growth, produces an estimate of the total market size and reports industry views on a range of salient issues. In addition, it provides an analysis of Mintel’s independently commissioned consumer research, which identifies the proportion of adults who are saving for children and how frequently they are doing so; establishes penetration rates for different types of savings and investment products; and gauges consumer reaction to the CTF and a number of other issues relating to children’s savings.
Get Full Details About This Report >>
|
|
US: 800.298.5699
Int'l: +1.240.747.3093
|
|
|
