Rise in Ssas will not encroach on Sipps: Hornbuckle
The popularity of self-invested personal pensions will not be affected by the increase in small, self-administered schemes, a director for Hornbuckle Mitchell, has claimed.
David White, managing director of Hornbuckle Mitchell, said the Sipp boom was not over.
Mr White said: “Sipps are a thriving market and have continued to see huge popularity. They offer a wealth of exciting investment opportunities for the client and make an attractive option for those who desire a broader range of investments compared to the traditional personal pension.”
Mr White added that while there were advantages to using a Ssas, he did not “foresee the market growing at the same speed as the Sipp market has done”.
He was responding to comments made by former James Hay director Richard Mattison, that the Sipp boom was over.
Mr Mattison made the comments as he announced a few weeks ago that he and former James Hay business development manager Jane Davies had bought Manchester-based small, self-administered scheme provider Whitehall Group.
Malcolm Simpson, principal for Gloucestershire-based Ashley Law Cotswold, said Sipps do appear to be a first choice mass-market product in some organisations.
However, he said he “broadly agreed” with Mr Mattison that their “boom years” may be over, particularly for higher charging plans.
He added: “In the current climate many people are looking at value for money in many aspects of life. If they review their Sipp plans and discover they are paying extra for features they do not or unlikely to use in future, and can get something similar for less, then they are likely to switch.”
