Group SIPPS - towards a more engaging and flexible pensions market?

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • The UK pensions market is comprised of individual and group pensions
    • The UK pensions market is undergoing continuing reform
      • Key aspects of UK pensions market reform
      • A-day reforms targeted the upper end of pension investors
      • Further reforms to the UK pensions market are needed to engage the mass market
      • Personal Accounts (National Pension Savings Scheme) are seen by some as the future of UK state pension provision
  • The UK group pensions market is at the core of the reforms
    • Group Personal Pensions (GPPs) have historically formed the core of the group pension market
    • Employer Sponsored Stakeholder Pensions (ESSs) were set up in 2001 in an attempt to encourage savings
    • Group Self-Invested Personal Pensions (Group SIPPs) are a new group pension product wrapper into which a wide range of investments can be placed
      • A range of products is available within the Group SIPP wrapper:
      • Some products remain prohibited within the Group SIPP wrapper:
    • Group SIPP new business is forecast to dominate the group pensions market by 2011
    • The Group SIPP will dominate the group pensions market as it is a flexible and engaging product
  • What is a Group SIPP and how does it differ from a SIPP?
    • The Group SIPP market offers members a flexible and engaging product, with a range of investment options tailored to suit the different needs of members.
    • A Group SIPP is an individual SIPP product grouped together for efficiency
      • Key questions exist over the viability of the Group SIPP
      • As a group product, SIPPs offer the possibility for some members to opt for greater investment flexibility and others more vanilla investments
      • There remain differences of opinion in the industry about the Group SIPP product
      • Industry views of a Group SIPP proposition depend on the provider' s existing market
      • The prospective success of a Group SIPP offering depends on the provider' s existing market
  • The market for Group SIPPs is expanding to include a wide range of employment offerings
    • How the Group SIPPs market is operating
      • The Group SIPP market is developing to encompass a wider range of employees
      • Group SIPP offerings are growing in popularity
      • The fee structure for Group SIPP offerings is developing to be inclusive for a larger number of clients
  • Developing the market for Group SIPPs is dependent on technology, communications and education
    • Enhanced technology and communications tools, greater flexibility and education to drive engagement regarding pension savings, are key to the success of the Group SIPP product.
    • Technology and communications are pivotal in the development of the Group SIPP market
    • The distribution and marketing of Group SIPPs requires co-operation between employers and providers
    • Education is key for a well-functioning workplace Group SIPP
    • Towards a more simplified future UK pension market?
• APPENDIX
  • Supplementary data
  • Definitions
    • Single premium policy
    • Regular premium
    • New business
    • Life based savings products
      • In-specie contribution
    • Pension product definitions
      • Personal Pensions
      • Stakeholder Pensions
      • Group personal pensions
      • DSS Rebates
      • Employer Sponsored Stakeholder pension (ESS)
      • SIPPs (Self Invested Personal Pensions)
    • ABI definitions of distribution channels
      • Independent Financial Advisors (IFAs)
      • Direct sales forces
      • Tied agents
      • Multi-tied agents
      • Bancassurance
      • Direct marketing
      • Telesales
      • Other
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Historic data for new business premiums for group pensions, £m APE, 2002-2006
    • Table 2: Forecast data for new business premiums for group pensions, £m APE, 2007-2011
    • Table 3: Forecast data for new business premiums for individual pensions, £m APE, 2007-2011
    • Table 4: Historic data for new business premiums for individual pensions, £m APE, 2002-2006
  • List of Figures
    • Figure 1: Overview of the UK Pension Market
    • Figure 2: Group personal pensions dominate the UK group pensions market, 2002-2006
    • Figure 3: Group SIPP new business is forecast to dominate the group pensions market by 2011
    • Figure 4: SIPP new business is forecast to dominate the individual pensions market by 2011
    • Figure 5: Towards a more simplified future UK pension market?
    • Figure 6: Personal pensions make up just under half of individual new pensions business in 2006