The popularity of Self-Invested Personal Pensions (SIPPs) is expected to grow by over 50% following A-Day, claims adviser research from FundsNetwork.
It claims the research confirms advisers welcome the A-Day changes, but they also expect many implications for their business, with four in five advisers predicting an impact on reporting and servicing requirements.
Around 78% of advisers believe the implications of A-Day could result in one or all of the following actions, including needing to track customers’ pension assets and investment strategy more closely, having to report more clearly the retirement and investment strategy to clients, who may also demand a more integrated approach to their overall financial planning needs.
The research of 140 advisers, suggest Pensions Simplification is set to be a big contributor to the growing popularity of SIPPs with 71% of advisers believing A-Day has made SIPPs a more attractive retirement planning option.
While 36% believe the attractions of SIPPs is further increased by the ability to hold it as a concurrent option to an occupational pension scheme.
Almost half of advisers, at 46%, expect SIPP sales to increase by around 50%, while almost one fifth of those questioned expect volumes to at least double. FundsNetwork points out the findings also show in addition to SIPPs, advisers are recommending a broad range of products for retirement including ISAs, PEPs, Mutual funds and Investment Bonds.
The research reveals 89% of advisers recommend SIPPs for retirement planning, with unit trusts and OEICs as the most popular investments within a SIPP wrapper, but 83% recommend investing in ISAs, PEPs and Mutual Funds as viable alternatives.
Meanwhile, the research by the investment platform, suggests A-Day will revolutionise the way advisers approach retirement planning for their clients, with 79% of advisers suggesting their retirement planning business will be supported by a platform in the future.
David Dalton-Brown, executive director and head of FundsNetwork, says it is fantastic to see the clear message to emerge from the research is advisers are warmly welcoming the changes A-Day presents.
He adds: “It is also encouraging an overwhelming majority of advisers (79%) believe they will use platforms for their retirement business in the future. This is due to the fact platforms can support the detailed and flexible reporting they need, along with offering a range of product wrappers and investment options.”
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 7968 4558 or email [email protected]IFAonline
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