Analyse the consequences of current factors and trends on financial services.

Authors Avatar by ellouise1997hotmailcom (student)

I am currently working as a trainee journalist for ITV and I have produced articles them and researched and provided production for the financial services in the UK. Word is getting around about my knowledge and understanding and the FCA has invited me to address its members. I now am going to produce a report to the FCA analysing the consequences of current factors and trends and their likely impact on financial service provision in the next five years.

Demographics are likely to have impact on financial services provision. In the UK we have an ageing population problem and this has implications on the provision of pensions. Life expectancy for men is 78 and for women is 82. However, if you reach 65, it increases to 84 for men and 86 for women. Because we have an aging population it means people are living for much longer and puts strain on the government because they are forced to pay state pension which is around £155.65 a week for a longer period of time. In the next 5 years the pensionable age for women will increase from 60 to 65 which means that the government will save money on state pensions to women. For men it will not go up, it will remain at 65. Currently the pensionable age is 65 for men and 63 for women but in 2018 it will be 65 for both men and women and in 2020 it will increase to 66 for both. By increasing the pensionable age, the government are going to save a lot of money. This will impact many people as they will have to work longer which could be considered well and bad. It allows them to put more money in their occupation pension however you have to wait longer to retire and receive state pension. In the next five years we know it’s going to increase and the government will save even more money. I do not expect the aging population to change.
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Nature of work will also impact financial services. During a recession the unemployment levels increase because businesses are not doing well and not a large demand on goods and services which results in people becoming redundant. During this time people have less disposable income and as a result it means people don’t save a lot. This has direct impact on mortgages because people will struggle to pay off the mortgage repayments especially if they are unemployed; their property may get repossessed. On the other hand, in a boom period, unemployment will be low and people will be have ...

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