The growth of the self-invested personal pension (Sipp) market will be led by two main factors, research by iPensions Group revealed.
According to 63% of financial advisers, consolidation and investment in enhanced administration technology will be the main drivers of expansion in the Sipp market over the next five years.
Around 30% of advisers said they already had clients asking for consolidation advice over the past 12 months, while 11% are expecting a significant rise for this kind of requests in the next two years.
According to iPension’s research, the rise in demand is largely due to the fact that customers want to see a clearer picture of their assets as they approach retirement, as 71% of respondents claimed.
Another 62% of advisers said that concerns about overall retirement strategy could be a major drive as well.
More than half (55%) reported that decisions to consolidate are mainly initiated by clients approaching 55 years of age who want to access their tax-free cash. But just 40% mentioned concerns over high charges from legacy pensions and a lack of fund choices.
iPensions group chief executive Sandra Robertson said: “Nearly a third of advisers specialising in Sipps have seen an increase in consolidation business in the past year and they expect that to continue as a major factor in the market.
“Increased investment in technology across the Sipp market and the pensions market in general is driving growth and helping to enhance the consolidation process by supporting advisers and clients.
“More needs to go online and happen digitally as people want instant information while also still valuing personal service and the key to supporting clients is combining that well with technology.”