Currently the UK pension market is worth in excess of £2.4 billion. Individual investors in a Self-Invested Pension Plan have assets under management that average £70,000 to £80,000 in value per plan.
Mintel’s 2021 pensions research reports that 37% of UK adults wanted to set up a new pension plan in the next 2 years. This includes women and the self-employed who historically have significantly less pension provision than employed males.
On the flip side, individual pension product sales levels have been in long-term decline due to the restrictions of receiving the money and the complexity of other investments particularly ISAs on the rise. However, during the height of COVID there has been a temporary boost in new pension plans being set up. The impact of auto-enrolment and the plethora of online self-service propositions will undoubtedly continue to influence investor behaviour. Whether a new fintech or well-established PLC, the opportunity to attract SIPP investments whilst offering your own funds and providing potential investors information of the benefits of long-term pension investing is too big a prospect to miss.
For advisers and fund managers, the operating costs and additional regulatory responsibilities mean some are losing the appetite for hosting their own SIPP platforms. The opportunities for white labelled pension propositions must harness the next investor-generation’s need for increasingly accessible, agile technological and greener portfolio solutions that feel tailored to the individual. White label third party administrators and white label SIPP providers must counter any erosion of the market’s trust from past scandals and poor regulatory oversight.
In Gaudi’s view, the best solution is for white label SIPP propositions to offer functionality built on robust, responsive administration, expert technical and compliance knowledge and transparent pricing structures. SIPP investors want their individual underlying investment portfolio management structure to be flexible, streamlined and efficient. Gaudi can help business partners develop compelling products delivered in a way that suits their target markets.