SIPPs are here to stay says Defaqto's latest report

SIPPs will be increasingly prevalent in the UK market as an individual retirement savings and income product solution in the years to come, according to independent financial research company Defaqto.

The view that SIPPs are here to stay is highlighted in Defaqto's annual review of the SIPP market, entitled: "SIPPS in the UK 2008 - The Personal Pension of the Future".

Matt Ward, Defaqto's Principal consultant for pensions and wealth management and author of the report, says: "Since their launch in 1990 SIPPs have blossomed from a niche to a mainstream pension proposition and the attention now paid to their importance by numerous financial services institutions in the UK will ensure their market longevity.

"Their ability to facilitate pensions savings, consolidation and income requirements with access to a broad range of investment options will continue to meet the needs of IFAs and clients for many years to come.

The fact that they are forming a key component within adviser platforms also ensures that they are embedded into the future of distribution in the UK." Defaqto's report includes an overview of market activity, the challenges faced and opportunities presented along with details of how providers of professional administration and investment services have sought exposure for their services via SIPPs.

For those seeking to gain an insight into IFA perception of SIPPs the report also majors on the results of a recent online survey conducted by Defaqto which indicates issues of importance to IFAs in the SIPP proposition and service delivery.

It points to where their expectations are not being met by the industry.

The IFA study specifically targeted IFAs conducting SIPP business and therefore provides details of their business habits, practice structures and preferred SIPP providers.

The report forms a vital piece of research and opinion for those companies seeking to play a key role in this ever changing market place.

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