Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

SIPPs - UK - December 2010

Over the past decade the self-invested personal pension (SIPP) market has grown tenfold, to the point where there are now around 650,000 plans in force. Traditionally considered a niche pension product aimed at the wealthier, more financially sophisticated and, most often, advised investor, this view is now being challenged.

Mintel’s report examines the validity of this assertion, by drawing on a range of sources including consumer survey research, trade interviews and industry sales data. The report additionally offers an overview of the current size and composition of the market, analyses distribution and advertising trends and examines the main issues currently keeping SIPP providers occupied.

  • Continuing market expansion is being driven by an increasing supply of products as well as the emergence and rising popularity of simplified/lower-cost products.
  • The growing trend towards DIY investment is leading to a steady stream of product and platform enhancements.
  • Specialist SIPP administrators and trustees are facing growing competition from platform providers and insurance companies.
  • The market has become fairly crowded and is ripe for consolidation, with existing players looking to build market share and new entrants using acquisition as a faster route to market.
  • Low ownership levels among wealthy consumers suggest that there is still a considerable way to go before this market reaches its full potential.
  • The corporate sector will be a major growth area going forward, due to the rollout of NEST in 2012 and greater interest generally in workplace savings.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Key issues
        • Market context and definitions
            • Figure 1: Types of private pension provision, UK
          • Abbreviations
          • Future Opportunities

              • Trend: Growth in DIY investing
                • Trend: Towards total transparency
                • Market in Brief

                  • SIPP market size
                    • Transfer activity
                      • Future prospects
                        • Market drivers
                          • Rival sectors and products
                            • Regulatory developments
                              • Recent market innovation
                                • Competitive context and key players
                                  • Distribution trends
                                    • Adspend on pension products
                                      • The key findings of Mintel’s consumer research: asset ownership
                                        • Typical characteristics of the SIPP investor
                                          • Sources of investment advice
                                            • Product awareness and future consideration
                                            • Internal Market Environment

                                              • Key points
                                                • The main factors influencing the market
                                                  • New government, new regulatory framework
                                                    • The RDR will have a positive impact on the SIPP market
                                                      • Platforms – proposed ban on fund manager payments has been removed
                                                        • CGT increase
                                                          • Cuts in pensions tax relief will have limited impact on the SIPP market
                                                            • Removing the requirement to annuitise by age 75 is welcome news
                                                              • Issues affecting the wider pension industry
                                                              • Broader Market Environment

                                                                • Key points
                                                                  • Social trends
                                                                    • Increasing longevity has several implications for the pensions industry
                                                                      • Figure 2: Life expectancy at age 50 and 65, by gender, 1981-2058 (actual and projected)
                                                                    • Number of higher-rate taxpayers estimated to have risen in 2010/11
                                                                      • Figure 3: Total number of taxpayers and number on higher rate, 1990/91-2009/10
                                                                    • The SIPP market could more than double in size within the next decade
                                                                      • Figure 4: Size of the UK adult population, segmented by value of investible assets held, August/September 2010
                                                                    • Macroeconomic and investment conditions
                                                                      • Spending cuts and tax rises will put households under greater pressure
                                                                        • What impact are these factors having on the SIPP sector?
                                                                          • Low base rate and high inflation is not a good mix for savers
                                                                            • Figure 5: Average annual changes in the Bank of England base rate, CPI and RPI – UK, 2001-10
                                                                          • Stock market faces renewed provocation…
                                                                            • Figure 6: FTSE 100 and FTSE All Share – daily index movements, November 2001-November 2010
                                                                          • …from the Irish bailout and renewed worries over sovereign debt levels
                                                                          • Competitive Context

                                                                            • Key points
                                                                              • Growth in SIPP sales outpacing the broader market
                                                                                • Figure 7: Number of new individual pension contracts, by product type, 2005-09
                                                                              • SIPPs are now the largest segment within the single-premium market
                                                                                • Figure 8: Value of new individual pension business, by product type, 2005-09
                                                                              • Very limited competition from SSASs
                                                                                • Figure 9: Value of new EPP and SSAS business, 2005-09
                                                                            • Market SWOT Analysis

                                                                                • Figure 10: UK SIPP market – SWOT analysis, 2010
                                                                            • Who’s Innovating?

                                                                              • Key points
                                                                                • SIPP Milestones
                                                                                  • Recent product development
                                                                                  • Trade Perspective

                                                                                      • About the participating companies
                                                                                        • SIPPs are a potentially ‘mainstream’ but not ‘mass-market’ product
                                                                                          • New products are being developed to cater for specific new audiences
                                                                                            • New pension legislation will have positive ramifications for SIPPs
                                                                                              • Product diversity naturally leads to varying charging structures and terminology
                                                                                                • There is some scepticism over whether the RDR will truly remove ‘conflicts of interest’
                                                                                                  • SIPP providers are positive about the market’s outlook
                                                                                                    • The market needs to be clearly defined and uniformly regulated
                                                                                                    • Market Size and Forecast

                                                                                                      • Key points
                                                                                                        • A swiftly expanding market
                                                                                                          • Value of new SIPP business increases by 25% in 2010
                                                                                                            • Figure 11: Volume and value of new SIPP business, 2006-10
                                                                                                          • Mintel expects strong growth in new business to continue
                                                                                                            • Figure 12: Forecast of the number of new SIPP sales – fan chart, 2006-15
                                                                                                            • Figure 13: Forecast of the value of new SIPP premiums – fan chart, 2006-15
                                                                                                            • Figure 14: Forecast of new SIPP business, at current and constant prices, 2006-15
                                                                                                          • Forecast methodology
                                                                                                            • Fan chart explanation
                                                                                                            • Market Segmentation

                                                                                                              • Key points
                                                                                                                • 2010 sees strong demand for both non-insured and insured SIPPs
                                                                                                                  • Figure 15: Value and volume of new SIPP business, segmented, by insured and non-insured business, 2008-10
                                                                                                                • Average premiums are much higher in the non-insured sector
                                                                                                                  • Figure 16: Average new premium, segmented, by insured and non-insured business, 2008-10
                                                                                                                • The non-insured sector has a much higher transfer rate
                                                                                                                  • Figure 17: Value of SIPP transfers and share of total single premiums, 2008-10
                                                                                                              • Market Share

                                                                                                                • Key points
                                                                                                                  • A market ripe for consolidation
                                                                                                                    • Most providers run SIPP administration in-house
                                                                                                                      • Standard Life is the largest provider of SIPPs by value of business in force
                                                                                                                        • Figure 18: Largest 12 SIPP providers, by value of in-force business, 2010 (mid-year)
                                                                                                                      • Significant others
                                                                                                                      • Companies and Products

                                                                                                                          • Standard Life
                                                                                                                            • Company description
                                                                                                                              • Position in the market
                                                                                                                                • Product range
                                                                                                                                  • Distribution
                                                                                                                                    • Key data
                                                                                                                                      • Recent activity
                                                                                                                                        • Future plans
                                                                                                                                          • Marketing and promotion
                                                                                                                                            • James Hay, IPS Partnership and IFG
                                                                                                                                              • Company description
                                                                                                                                                • Position in the market
                                                                                                                                                  • Product range
                                                                                                                                                    • Distribution
                                                                                                                                                      • Key data
                                                                                                                                                        • Recent activity
                                                                                                                                                          • Future plans
                                                                                                                                                            • AEGON
                                                                                                                                                              • Company description
                                                                                                                                                                • Position in the market
                                                                                                                                                                  • Product range
                                                                                                                                                                    • Distribution
                                                                                                                                                                      • Key data
                                                                                                                                                                        • Recent activity
                                                                                                                                                                          • Future plans
                                                                                                                                                                            • Marketing and promotion
                                                                                                                                                                              • A J Bell
                                                                                                                                                                                • Company description
                                                                                                                                                                                  • Position in the market
                                                                                                                                                                                    • Product range
                                                                                                                                                                                      • Distribution
                                                                                                                                                                                        • Key data
                                                                                                                                                                                          • Recent activity
                                                                                                                                                                                            • Marketing and promotion
                                                                                                                                                                                              • Hargreaves Lansdown
                                                                                                                                                                                                • Company description
                                                                                                                                                                                                  • Position in the market
                                                                                                                                                                                                    • Product range
                                                                                                                                                                                                      • Distribution
                                                                                                                                                                                                        • Key data
                                                                                                                                                                                                          • Recent activity
                                                                                                                                                                                                            • Future plans
                                                                                                                                                                                                              • Suffolk Life
                                                                                                                                                                                                                • Company description
                                                                                                                                                                                                                  • Position in the market
                                                                                                                                                                                                                    • Product range
                                                                                                                                                                                                                      • Distribution
                                                                                                                                                                                                                        • Key data
                                                                                                                                                                                                                          • Recent activity
                                                                                                                                                                                                                          • Brand Communication and Promotion

                                                                                                                                                                                                                            • Key points
                                                                                                                                                                                                                              • Pension providers and advisers increase their adspend
                                                                                                                                                                                                                                • Figure 19: Total advertising expenditure on pensions and retirement income solutions, by sub-category, 2006-10
                                                                                                                                                                                                                              • Aviva and Scottish Widows use TV advertising to enhance their brand presence
                                                                                                                                                                                                                                • Figure 20: Top ten advertisers of pensions and retirement income solutions, 2008-10
                                                                                                                                                                                                                              • Press and TV account for the largest share of pensions adspend
                                                                                                                                                                                                                                • Figure 21: Proportional distribution of adspend on pensions and retirement income solutions, by media type, 2008-10
                                                                                                                                                                                                                            • Channels to Market

                                                                                                                                                                                                                              • Key points
                                                                                                                                                                                                                                • IFAs generate the largest share of SIPP business
                                                                                                                                                                                                                                    • Figure 22: New regular-premium SIPPs, by sales channel, 2008-10
                                                                                                                                                                                                                                    • Figure 23: New single-premium SIPPs, by sales channel, 2008-10
                                                                                                                                                                                                                                  • Platform progress
                                                                                                                                                                                                                                  • Value of Consumers’ Investible Assets

                                                                                                                                                                                                                                    • Key points
                                                                                                                                                                                                                                      • Survey background
                                                                                                                                                                                                                                        • One in five UK adults aged 21+ have investible assets of £30,000 or over
                                                                                                                                                                                                                                            • Figure 24: Value of investible assets, 2009 and 2010
                                                                                                                                                                                                                                          • Wealth increases with age until retirement
                                                                                                                                                                                                                                            • Figure 25: Value of investible assets, by age group, August/September 2010
                                                                                                                                                                                                                                          • Good scope to grow the female SIPP investor market
                                                                                                                                                                                                                                            • Figure 26: Value of investible assets, by gender and socio-economic group, August/September 2010
                                                                                                                                                                                                                                          • Higher earners have greater assets to invest
                                                                                                                                                                                                                                            • Figure 27: Value of investible assets, by gross annual household income, August/September 2010
                                                                                                                                                                                                                                        • Ownership of SIPPs and Other Assets

                                                                                                                                                                                                                                          • Key points
                                                                                                                                                                                                                                            • SIPPs are held by 1% of the adult population
                                                                                                                                                                                                                                                • Figure 28: Ownership of pensions and other assets, by value of assets, August/September 2010
                                                                                                                                                                                                                                              • Investor types
                                                                                                                                                                                                                                                  • Figure 29: Investor types, by value of assets, August/September 2010
                                                                                                                                                                                                                                                • 45-64-year-olds are most likely to have a SIPP
                                                                                                                                                                                                                                                  • Figure 30: Ownership of pensions and other assets, by age, August/September 2010
                                                                                                                                                                                                                                                • Typical characteristics of the SIPP investor
                                                                                                                                                                                                                                                  • Men are twice as likely as women to have a SIPP
                                                                                                                                                                                                                                                    • Figure 31: Ownership of pensions and other assets, by gender and socio-economic group, August/September 2010
                                                                                                                                                                                                                                                  • Investment portfolios become more diverse with income
                                                                                                                                                                                                                                                    • Figure 32: Ownership of pensions and other assets, by gross annual household income, August/September 2010
                                                                                                                                                                                                                                                • Sources of Advice Among the Affluent

                                                                                                                                                                                                                                                  • Key points
                                                                                                                                                                                                                                                    • Shift away from professional advice sources may indicate a rising trend towards DIY investment
                                                                                                                                                                                                                                                        • Figure 33: Investment advice sources used, 2009 and 2010
                                                                                                                                                                                                                                                      • High street bank is the top source for investment advice
                                                                                                                                                                                                                                                        • Figure 34: Investment advice sources used, by value of assets, August/September 2010
                                                                                                                                                                                                                                                    • The Consumer – Attitudes towards SIPPs

                                                                                                                                                                                                                                                      • Key points
                                                                                                                                                                                                                                                        • Nearly half of the target audience are aware of SIPPs
                                                                                                                                                                                                                                                            • Figure 35: Agreement with statements relating to SIPPs, 2009 and 2010
                                                                                                                                                                                                                                                          • Awareness and interest is higher among personal pension savers
                                                                                                                                                                                                                                                            • Figure 36: Agreement with statements relating to SIPPs, by ownership of personal pensions and other assets, August/September 2010
                                                                                                                                                                                                                                                          • Room to improve awareness among female and younger investors
                                                                                                                                                                                                                                                            • Figure 37: Agreement with statements relating to SIPPs, by gender and age group, August/September 2010
                                                                                                                                                                                                                                                          • New SIPP business will overwhelmingly come from wealthy ABs
                                                                                                                                                                                                                                                            • Figure 38: Agreement with statements relating to SIPPs, by socio-economic group and gross annual household income, August/September 2010
                                                                                                                                                                                                                                                        • Appendix – Pension Ownership

                                                                                                                                                                                                                                                            • Figure 39: Pension ownership, by demographics, August/September 2010

                                                                                                                                                                                                                                                        Companies Covered

                                                                                                                                                                                                                                                        • A J Bell Limited
                                                                                                                                                                                                                                                        • Aegon UK
                                                                                                                                                                                                                                                        • Association of British Insurers
                                                                                                                                                                                                                                                        • Aviva Plc
                                                                                                                                                                                                                                                        • AXA Sun Life
                                                                                                                                                                                                                                                        • AXA UK plc
                                                                                                                                                                                                                                                        • Bank of England
                                                                                                                                                                                                                                                        • Barclays Stockbrokers Limited
                                                                                                                                                                                                                                                        • Barnett Waddingham LLP
                                                                                                                                                                                                                                                        • Department for Work and Pensions
                                                                                                                                                                                                                                                        • Fidelity Investment Services Limited
                                                                                                                                                                                                                                                        • Financial Services Authority (The)
                                                                                                                                                                                                                                                        • Government Actuary's Department (GAD)
                                                                                                                                                                                                                                                        • Hargreaves Lansdown Plc
                                                                                                                                                                                                                                                        • HM Revenue & Customs
                                                                                                                                                                                                                                                        • HSBC USA Inc.
                                                                                                                                                                                                                                                        • Investment Management Association
                                                                                                                                                                                                                                                        • IPS Actuarial Services Ltd
                                                                                                                                                                                                                                                        • James Hay Pension Trustees Limited
                                                                                                                                                                                                                                                        • Legal & General Group PLC
                                                                                                                                                                                                                                                        • LV=
                                                                                                                                                                                                                                                        • Mattioli Woods
                                                                                                                                                                                                                                                        • National Savings & Investments
                                                                                                                                                                                                                                                        • Personal Pension Management Limited
                                                                                                                                                                                                                                                        • Prudential plc
                                                                                                                                                                                                                                                        • Rensburg Sheppards
                                                                                                                                                                                                                                                        • Standard Life Bank Limited
                                                                                                                                                                                                                                                        • Suffolk Life
                                                                                                                                                                                                                                                        • Winterthur Life UK Limited
                                                                                                                                                                                                                                                        • Zurich Financial Services

                                                                                                                                                                                                                                                        SIPPs - UK - December 2010

                                                                                                                                                                                                                                                        £1,995.00 (Excl.Tax)