May 14 2007
A-Day alterations to pension regulations appear to have sparked a trend towards self invested personal pensions (Sipps) in the UK, with 64 per cent of advisors reporting an increase in this area of business since April 2006, according to the latest figures.
Within the current market Sipps are becoming increasingly popular, suggests the Alliance Trust, whose figures show that for one in seven advisors business in this sector has more than doubled since A-Day and for 21 per cent it has risen by close to 50 per cent.
Furthermore, one per cent of advisors have seen a fall in demand for Sipps since A-Day, with the remaining 34 per cent indicated that the situation remained largely unchanged, according to the recent research.
Hyman Wolanski, head of pensions at Alliance Trust said: "A-Day certainly was a long awaited highlight in the pensions arena, turning Sipps into a topic on more investors' lips than ever before.
"One of the major outcomes of A-Day is that it has made pensions much more attractive or those able and prepared to save for retirement."
Financial services firm Standard Life recently reported that its sales of Sipps were up by around 117 per cent in the first quarter of this year in comparison with the same three months during 2006.
