Sipp sales surge 25% in Q1 despite uncertainty

Total SIPP sales for the first quarter of 2017 surged by 25% with inflows of £3bn, an increase of 16.6% on Q4 2016, according to data from Equifax Touchstone. Despite mounting political uncertainty, Sipps investors continued to push money into Sipps and overall pension investment also rose strongly.New pension investments (excluding transfers) jumped by over a third (36.8%) during Q1 2017, rising to £6.8bn from £5bn in Q4 2016.New inflows for the quarter were more than twice as high year on year, increasing by 55.4% (£4.4 billion) on Q1 2016, according to analysis from Equifax Touchstone, an intermediary database provider.The data, which covers more than 90% of the UK’s main life and pensions companies, shows that total pension investments, including transfers for Q1 2017, reached £12.4bn, up by 30.3% on the previous quarter. Transfers across all products rose by 23.3% to £5.6 billion, says Equifax.John Driscoll, director at Equifax Touchstone, said: “It’s encouraging to see such a positive start to 2017, well up on levels seen in 2016. Growth in pension inflows has proved resilient to political uncertainty and it will be interesting to see if concerns about whether stock markets are due a correction will start to impact inflows for the rest of the year.“Advisers are receiving increasing requests from clients to opt out of their final salary scheme. As investors continue to weigh up the benefits of a guaranteed final salary pension, versus flexible access to their retirement savings, it’s likely this behaviour will follow through into the next quarter.“Pension transfer volumes will continue the upward trend as ‘insistent clients’ give greater weight to flexibility in their Financial Planning.” p.p1 {margin: 0.0px 0.0px 13.3px 0.0px; text-align: center; line-height: 15.3px; font: 21.0px Calibri; min-height: 26.0px} p.p2 {margin: 0.0px 0.0px 13.3px 0.0px; line-height: 15.3px; font: 19.0px Georgia} p.p3 {margin: 0.0px 0.0px 13.3px 0.0px; text-align: center; line-height: 15.3px; font: 19.0px Georgia} span.s1 {font-kerning: none} span.s2 {font: 17.0px Georgia; font-kerning: none} table.t1 {width: 661.0px; border-collapse: collapse} td.td1 {width: 274.6px; border-style: solid; border-width: 1.3px 1.3px 1.3px 1.3px; border-color: #000000 #000000 #000000 #000000; padding: 0.0px 7.2px 0.0px 7.2px} td.td2 {width: 169.6px; border-style: solid; border-width: 1.3px 1.3px 1.3px 0.0px; border-color: #000000 #000000 #000000 transparent; padding: 0.0px 7.2px 0.0px 7.2px} td.td3 {width: 170.6px; border-style: solid; border-width: 1.3px 1.3px 1.3px 0.0px; border-color: #000000 #000000 #000000 transparent; padding: 0.0px 7.2px 0.0px 7.2px} td.td4 {width: 274.6px; border-style: solid; border-width: 0.0px 1.3px 1.3px 1.3px; border-color: transparent #000000 #000000 #000000; padding: 0.0px 7.2px 0.0px 7.2px} td.td5 {width: 169.6px; border-style: solid; border-width: 0.0px 1.3px 1.3px 0.0px; border-color: transparent #000000 #000000 transparent; padding: 0.0px 7.2px 0.0px 7.2px} td.td6 {width: 170.6px; border-style: solid; border-width: 0.0px 1.3px 1.3px 0.0px; border-color: transparent #000000 #000000 transparent; padding: 0.0px 7.2px 0.0px 7.2px} Pension type Q4 2016 Q1 2017 Total pension investments (including transfers) £9,540,561,770 £12,431,359,644 Total pension investments (excluding transfers) £4,958,409,064 £6,783,763,088 Flexible drawdown (single premium) £337,967,829 £462,495,879 Flexible drawdown (transfer) £745,746,901 £839,974,508 Pension Trans.1 £4,582,152,705 £5,647,596,557 SIPP (single premium) £2,560,572,767 £2,984,863,321 SIPP (transfer) £2,549,218,046 £3,417,402,036

Sipp sales surge 25% in Q1 despite uncertainty

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