MoretoSIPPs, the specialist consultancy run by SIPP industry veteran John Moret, has just published a report on the UK SIPP market. Its key finding is that the SIPP market has passed two new milestones – with over 6 million SIPP investors and almost £650 billion of assets.
Commenting John Moret, Principal, MoretoSIPPs said: “Accurate data on the UK SIPP market continues to be very difficult to obtain and earlier this year MoretoSIPPs conducted another survey of SIPP providers as preparation for its latest report on this market. The definition of what constitutes a SIPP remains problematic and the FCA’s suggestion in their discussion paper DP24/3 of a new category of a “ready-made“ SIPP adds to the confusion.
“Most of the data was collected during quarter 1 2025 so it is likely that by now SIPP assets will be nearer £700bn which represents over 20% of the UK’s total funded pension assets. Over 90% of these SIPPs are “streamlined” with “standard” investments. Investment platforms and life companies operate the vast majority of these SIPPs. The assets in “complex” SIPPs with wider range investments total just under £120bn in respect of just over 300,ooo investors.”
Some of the other conclusions of the report are:
- Nearly 70% of SIPPs operate on a non-advised basis and this proportion is growing year on year.
- Only 1 in 8 SIPP investors have vested their benefits suggesting that over £500 billion of assets are yet to vest. The new “targeted support” regime may have a significant influence over time.
- There are a growing number of new entrants to the market particularly companies offering ETFs and just recently crypto ETNs. Mostly these new entrants are partnering with existing SIPP providers.
- The SIPP market will comfortably exceed £750billion by 2030 but there may be a fall in the number of SIPPs and SIPP assets beyond 2030.
- There will be further consolidation in both “streamlined” and “complex” sectors which may provide the best opportunity for growth in the medium term.
- There was little support from survey respondents for the “ready-made SIPP”. categorisation – which is hardly surprising as effectively as defined it is really a personal pension not a SIPP.
John added: “There are clear signs of some providers focussing their efforts more on the “decumulation” phase, making use of new technologies, which is to be welcomed and may well be where major opportunity lies in the future. The government’s growth agenda may well also lead to more interest in the private market and similar investments such as LTAFs but this may require some reappraisal of the current SIPP regulatory framework.
“However, given the political and fiscal uncertainties and the changing pensions landscape, especially involving workplace DC pensions and potentially CDC retirement schemes, for the first time I believe there is a genuine prospect of a fall in SIPP numbers and assets beyond 2030. Given that by then the total number of SIPP investors may represent over 15% of the working population this is not a huge surprise.”
