SIPP TAKE UP INCREASES AS ADVISERS CAPITALISE ON EXTRA FREEDOM
New survey reveals increased IFA take up post A-Day
Press Release 18th April 2008
Research by the LV= flexible retirement solutions business* has revealed that more financial advisers than ever are using the freedom that Self Invested Personal Pensions (SIPPs) allow their clients post A-Day.
Two years on from Pensions Simplification, and a year after SIPPs became a regulated product, the survey conducted amongst 250 financial advisers** highlights the increased take up of SIPPs.
The research shows that since April 2006:
- Almost a third (30%) of advisers who previously did not undertake any SIPP business have now begun advising and completing SIPP cases.
- More than one quarter (27%) have increased the amount of SIPP business they are doing on behalf of clients.
Furthermore, advisers who were already conducting SIPP business pre A-Day have seen notable increases in the numbers of clients:
- Nearly one in four advisers (23%) stated that they had seen a fair increase in the number of SIPP clients post A-Day.
- Nearly one in ten (9%) advisers stated that they now have ‘a lot' of SIPP clients post A-Day.
Ray Chinn, Head of Pensions at LV=, comments on the surge in SIPP sales following pension simplification: "It is certainly encouraging to see an increase in the interest in SIPPs shown by advisers, especially as there had been some concerns that not enough advisers were exploring the SIPP options with their clients. The legislative changes post A-Day and the increased confidence of SIPPs being a regulated product have made them more appealing, and they certainly seem to be ‘the new black' at the moment. Where once SIPPs were thought of as niche products, they have now taken centre stage."
"It is important to stress that SIPPs are not suitable for all clients. The interest in them is good news for pension planning in general, but advisers must ensure suitability of the product. In many cases, however, SIPPs can provide a flexible and low-cost option to allow clients to hold pension funds. All financial advisers should be exploring SIPPs as a real alternative. Some of the ‘packaged SIPP products' – linked to investment platforms or offering easy access to Discretionary Management services – can work particularly well in terms of providing investment flexibility while keeping costs down."
Through its Transitions Retirement Plan LV= gives access to a growing range of fund choices, including:
- 12 funds run by the leading asset management team from LV=.
- A range of over 60 directly linked external funds.
- A direct link to the Fidelity Funds Network platform.
- A choice of four discretionary investment managers.
For more information about the SIPP products available from LV=, including its five star rated discretionary SIPP*** visit www.lvadviser.co.uk
* LV= launched its flexible retirement solutions business in January 2008, following the successful completion of the acquisition of the new business operations of Tomorrow (formerly GE Life) from Swiss Re, on 31 December 2007.
** Research conducted by IQ Research Ltd amongst 250 IFAs throughout October and November 2007.
*** LV= has been awarded a five star rating for its Discretionary SIPP by Defaqto, with effect from 1st February. The rating acknowledges the quality of the product offered by the fast-growing life and pensions provider and this is echoed by the impressive level of sales achieved in the last 12 months.
