Royal London’s Pension Portfolio – Core Investments has topped the list of most recommended Personal Pension Plans in 2024.
The portfolio finished top of the table, featuring in one in three recommendations (33%), according to new research from Defaqto.
Richard Hulbert, insight consultant at Defaqto, said: “It is unusual to see a single product dominate a market in this way, especially one as mature and varied as this. A clear sign that Royal London has got its proposition right.”
Aviva’s Pension Portfolio (PPP) came second with an 18% share, followed by Quilter’s Collective Retirement Account in third place (16%) and Prudential’s Retirement Account in fourth place (11%). Defaqto’s research showed Aviva is the only provider with two PPPs in the top ten, in second and eighth place, creating a combined market share of 21%.
Hulbert said: “The Prudential 11% market share is interesting, because in the equivalent review of the SIPP market it attracted 6.1%. Perhaps a reflection that smoothed managed funds are more of a natural fit with those using PPPs.”
Meanwhile, Defaqto said there is a significant step down in market share to fifth placed Transact (5%) and sixth placed Scottish Widows (4%). The firm said the last four placed PPPs appear “quite evenly matched” with only 0.3% difference between them all.
The PPP sector now features 50 retail products from 34 providers. Collectively, the top ten make up 85% of all PPP recommendations, while 39 of the 50 PPPs individually attracted less than 1% market share.
Hulbert added: “Looking forward, the PPP sector will shortly turn 40. It remains a fantastic saving solution for consumers looking for simplicity and peace of mind, especially the self-employed.
“However, the dominance by Royal London and Aviva who, between them, take 54.4% of recommendations does not indicate a healthy and competitive market. Let’s hope through adviser feedback and appreciation of the strength of alternative propositions, we start to see a more competitive marketplace emerge in 2025.”
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