Auto-enrolment will reduce demand for self-invested personal pensions at the lower-earning end of the retirement market, Martin Tilley, technical services director at Dentons says.
He said once auto-enrolment is embedded, people on medium incomes will on average begin saving with their employer, and starting earlier than they currently are. This will reduce the need for them to make their own SIPP arrangements through an adviser. "The £10,000 to £50,000 market for SIPPs will dry up a little," Tilley said. He added that SIPPs will remain relevant after auto-enrolment to people who begin saving through their employers at the start of their careers, and who work up to a senior role, as they may still use SIPPs to top up their savings with extra cash prior to retire...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
