Introduction
Pensions Simplification, the new regulatory regime for UK pensions to be introduced in April 2006, will provide a major shake-up for the industry. Wealthy customers, with their complex financial needs, will be best positioned to take advantage of the liberated market that these changes will create. This represents a major opportunity for competitors at the top end of the UK pensions market.
Scope of this report
- Covers eight specialist pensions products aimed at wealthy UK customers: SIPPs, SSSAS, EPPs, AVCs and FSAVCs, Section 32 Transfers, UURBs and FURBs
- Offers historic data from 2000 to 2004 and forecasts to 2009
- Sizes and forecasts the market in terms of premiums (total market and those held by insurers) and assets
Research and analysis highlights
£2.4bn of gross new business premiums were paid into specialist pensions products run by insurance companies in 2004 (out of a total market of £4.1bn). Executive Pension Plans were the most important specialist pensions product for insurers followed by Section 32 Transfers.
In theory at least, following Simplification there will be only one type of pension. New style pensions will be demarcated more by their pricing, transparency, investment range and provider choice than by the product structure.
SIPPs will become a major player in the UK pensions market by 2009 with annual premiums of £4.6bn and total assets of £53bn. These products will gain large inflows of money from wealthy clients taking advantage of the Pensions Simplification regulations to invest in a broad range of assets with higher rate tax relief.
Key reasons to read this report
- Pensions for wealthy clients will be one of the fastest growing and most profitable parts of the UK financial services market in the next five years
- This report provides a vital guide as to how regulatory change will transform this market
- This report provides the most reliable sizing and forecasting of the market available
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