Aberdeen Adviser has called on regulators and policymakers to improve the collection and publication of data on self-invested personal pensions (SIPPs).
It follows a Freedom of Information request to HM Revenue & Customs to better understand how people are using SIPPs, how contribution patterns are evolving and where these products sit within the broader retirement savings landscape.
However, HMRC’s response revealed a significant data gap, after it confirmed it does not hold data identifying SIPPs or Junior SIPPs as distinct categories. Pension providers are also not currently required to report this information and as a result, there is no reliable way to track how many SIPPs exist, how they are growing or how they are being used.
Aberdeen Adviser said that for such a rapidly growing market, consistent, repeatable data that can be broken down by product type, contributions and drawdown is essential for fully informed pension policy.
It follows a recent consultation by the Financial Conduct Authority into standards across the SIPP market, amid concern around “weak record keeping.”
Richard Denning, chief executive officer at Aberdeen Adviser, said: “SIPPs are central to how millions of people plan for retirement. Advisers and providers rely on good data to understand how people are saving and to develop products that meet their needs. The current gap makes that much harder. We think it is time for a more consistent and transparent approach.”
Aberdeen Adviser is calling for three changes: mandatory reporting of pension scheme types, including SIPPs and Junior SIPPs; regular publication of product-level statistics covering accounts, contribution and assets; and a consistent reporting framework that brings pension data in line with ISA data.
Denning added: “For a system that places increasing responsibility on individuals to fund their own retirement, reliable data is becoming increasingly essential. Without a clearer picture of how SIPPs are being used, providers find it harder to design products that reflect real saving behaviour and to identify where people may need more support. Better data would help the whole industry respond more effectively.”
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