Nearly two-thirds of advisers have seen an increase in Self Invested Personal Pension business since A-Day, claims Alliance Trust Savings.
The survey of 115 advisers reveals 64% reported an increase in Sipp volumes since pension simplification came into effect in April last year, while just 1% claim Sipp business has declined, and 35% reveal their business has stayed static.
In addition, the findings reveal 21% of advisers claim Sipp business volumes have increased by 50%, while 3% say Sipp sales have grown by 75%, and one in seven claim their sales have sales have doubled or more.
As a result Alliance Trust Savings says advisers have a positive outlook on the Sipp market, as 48% expect a similar rate of growth to the last year, with 49% believing Sipp business will accelerate further, while just 2% expect business volumes to decline.
However, the company points out Sipps are not the only area to have seen an increase in the last year, as the research reveals 33% of advisers name discretionary funds as the investment category their customers are most interested in.
And 26% say commercial property is the most popular investment category among clients, while unquoted shares was highlighted by 16% of advisers, 12% mentioned direct equity and 8% suggested hedge funds had most caught their clients interest since A-Day.
Hyman Wolanski, head of pensions at Alliance Trust, says A-Day was a long-awaited highlight in the pensions arena, turning Sipps into a topic on more investors’ lips than ever before.
He adds: “One of the major outcomes of A-Day is it has made pensions much more attractive for those able and prepared to save for retirement. And it seems it hasn’t stopped there – our research shows financial advisers have seen a tremendous uplift in Sipp business and, with the outlook for the coming year remaining positive, we expect this trend to continue.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7034 2681 or email [email protected]IFAonline
Bought retailer in March 2016
Aberdeen's Laurent Frings
14,500 new complaints forecast
Projected AUA for advised platforms