SIPP contribution levels are likely to fall in early 2009 as concern over the state of the economy mounts, according to European Pensions Management (EPM).
Financial advisers may do well out of the turbulent markets, however, with EPM expecting higher transfer volumes into SIPPs in the New Year.
Looking forward to 2009, EPM's managing director, Francis Moore, says pressure on company profits and low job security will hit SIPP contributions in 2009, though he believes IFAs will still see healthy levels of SIPP business.
"The level of transfers to SIPPs is set to continue as individuals seek control over their investment choices," he says.
Moore believes cash accounts will be particularly attractive in 2009, due to major falls in the value of equities and other assets, and says consumer demand for diverse cash holdings has already increased.
UK workers will also become more interested in saving for retirement as financial issues become increasingly important in everyday life, he adds.
"I predict that people will become increasingly interested in their pension pots as the reality of the struggle many pensioners face to have a comfortable retirement is highlighted by the press."
"We are also expecting to see the FSA play an increasing role in the sector in light of the thematic review into personal pension transfers and the Retail Distribution Review."
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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