As the UK faces an ongoing retirement savings challenge, Aberdeen Adviser, one of the largest adviser platforms, is calling on the government to make comprehensive data on SIPPs (Self-Invested Personal Pensions) publicly available. This move would provide critical transparency on the SIPP market, allowing individuals and families to make informed decisions about long-term, tax-efficient savings for retirement.
Currently HMRC’s private pension statistics series is the main source of published data. These statistics provide annual information on private (non-occupational) pensions, which includes SIPPs as a subset of personal pensions and do not separately identify SIPPs versus other personal pensions.
The need for accessible, reliable data on SIPPs is particularly urgent given the broader context of rising living costs, economic uncertainty, and increasing concerns over the future sustainability of pensions. The government already publishes detailed statistics on ISAs and Junior ISAs, reflecting the growing demand for tax-efficient savings for children and grandchildren. However, there is currently no equivalent public data available on SIPPs, leaving a gap in understanding for those planning for retirement.
“A retirement savings challenge is staring us in the face. We need to prioritise long-term, tax-efficient savings solutions. This surely starts with comprehensive, freely available data on the SIPP market,” said Noel Butwell, CEO at Aberdeen Adviser. “In today’s economic environment, it’s more important than ever to ensure that everyone is equipped with the knowledge and tools to build a solid financial future. And that starts with data transparency.”
Junior SIPP allowance
With many young people struggling with the cost of living, student loan debt, and high housing costs, it is essential to support them in making informed decisions about their retirement savings early on.
The Junior ISA allowance is currently set at £9,000 per tax year, and publicly available HMRC data highlights significant demand for these tax-efficient wrappers. In contrast, there is no equivalent public data on Junior SIPPs. While contributions to Junior SIPPs are tracked by HMRC, detailed statistics on their uptake are not readily available, with the only information typically coming from Freedom of Information (FOI) requests or industry analyses.
Aberdeen Adviser’s ‘Mind the 15-year-old pension gap’ campaign calls for the Junior SIPP annual allowance to be aligned with that of Junior ISAs to help level the playing field for younger generations and encourage earlier pension savings.
The Junior SIPP and Junior ISA were launched in 2011 – but while each started lifewith a £3,600 annual allowance (including tax relief for Junior SIPPs), the Junior ISA allowance has since almost trebled to £9,000 (although has still not kept up with inflation). To bring the Junior SIPP allowance to £9,000, in line with Junior ISAs, would require the contribution to annual SIPP allowance to be £7,200 net (with £1,800 tax relief at source).
“With Junior ISAs, we see a clear picture of the growing demand, thanks to publicly reported data. Yet, Junior SIPPs, an equally important tool in intergenerational wealth planning, remain under the radar,” said Verona Kenny, Chief Distribution Officer at Aberdeen Adviser. “If Junior ISAs are seen as important enough to report on publicly, it only makes sense to extend that transparency to Junior SIPPs, enabling families to make better-informed decisions for the financial futures of younger generations.”
Junior ISAs hit all-time highs
Aberdeen Adviser’s analysis of HMRC Annual Savings data shows a surge in Junior ISA subscriptions, with both the number of accounts and total amounts subscribed hitting record highs in the latest available 2023-24 statistics:
| Tax year | Junior ISA Account Subscriptions | Junior ISA Total Amount Subscribed |
| 2020-21 | 955,000 | £1 billion |
| 2022-23 | 1.25 million | £1.5 billion |
| 2023-24 | 1.37 million | £1.8 billion |
However, for Junior SIPPs, publicly available figures are scarce. Industry data based on FOI request by Lubbock Fine Wealth Management shows that contributions to Junior SIPPs have increased, with total contributions rising to £79.6 million in the year to April 2023, up from £75.9 million the year before. While this is a positive trend, the lack of publicly available statistics makes it harder for families to assess the full potential of this savings option.
Meanwhile the outlook for younger people saving into their own workplace pension is less optimistic, as they try to navigate cost of living pressures, stagnant wage growth and high rent. Publicly reported FOI data from HMRC requested by Bowmore Financial Planning reveals the number of young people aged 20-29 contributing to workplace pensions in 2023/24 (via relief at source payment method) was 6.1% down to 10.3 million from 11 million the year before.
A call for action
Verona Kenny said: “As the UK faces economic uncertainty, rising education costs, and changes in pension tax rules, Junior ISAs and Junior SIPPs are increasingly crucial tools for modern intergenerational wealth planning. To encourage long-term savings, we need to level the playing field, both in terms of contribution allowances and data transparency. Bridging the gap between the Junior ISA and Junior SIPP annual allowances would not only help ensure fairness but also provide families with the clarity they need to plan effectively for the future.”
Aberdeen Adviser is advocating for government action to improve data availability on SIPPs, as well as consideration of aligning the Junior SIPP annual allowance with the Junior ISA allowance to level the playing field for younger savers.
