The average amount that individuals put into a SIPP account is growing and that could be good news for robo-advice platforms.
The average amount invested in SIPPs at The Share Centre was up 75 per cent year-on-year, according to the retail stockbroker. Pension plans give individuals a bigger nest to build up for retirement, said Helal Miah, investment research analyst at The Share Centre.
“For those that want to combine the tax advantages of a pension while also being able to select their own investments, a Self-Invested Personal Pension, or ‘SIPP’, could be a suitable option,” Miah said. “This type of pension account allows investors to take control of their retirement pot in order to help maximise returns and cut costs.”
There are not many robo-advice platforms that offer a SIPP product but it is in the works for some. Scalable Capital for example is working with SIPP administration company Embark to launch an offering later this year. Fundment, an automated white label platform that aims to help Independent Financial Advisers take on robo-advice platforms, recently launched its own SIPP offering.
Automated wealth management platform Moneyfarm is also planning to offer a SIPP by the end of the third quarter. The company already offers a similar insurance product in Italy.
'The most important thing for us is to increase our product range, and we want to be at the centre of a customer's wealth management needs across the board, from investments to pensions, tax and the whole planning process,” Co-founder and chief executive Giovanni Daprà told New Model Adviser. “We are looking at how to develop a product and expand it in such a way as to become the focal point for someone's entire financial life.”
This story first appeared on www.roboadvicenews.com
