Govt and regulators urged to improve SIPP data reporting

Regulators and policymakers need to improve the collection and publication of data on self-invested personal pensions (SIPP), according to Aberdeen Adviser, after a freedom of information (FOI) request to HMRC showed a “significant gap” in the UK’s long-term savings data.

The FOI request submitted by the company aimed to gain a better understanding of how people were using SIPPs, how contribution patterns were evolving, and where the products sat in the wider retirement savings landscape.

In response, HMRC confirmed that it did not hold data identifying SIPPs or junior SIPPs as distinct categories.

As pension providers are not required to report this information, Aberdeen Adviser warned there was no reliable way to track how many SIPPs exist, how they were growing, or how they were being using.

It argued that private pension data should meet the same standards as ISA data, which is published annually and covers market values, subscription levels, and growth trends.

In June, the Financial Conduct Authority (FCA) published a consultation that outlined standards of due diligence for SIPPs amid “weak record keeping”.

Aberdeen Adviser argued that, for such a rapidly growing market, consistent, repeatable data that can be broken down into categories was essential, and therefore called for three changes.

These were: mandatory reporting of pension scheme types, including SIPPs and junior SIPPs; regular publication of product-level statistics covering accounts, contributions, and assets; and a consistent reporting framework that brings pension data in line with ISA data.

While the firm acknowledged that better data would not address all the challenges in the pension system, it argued it would give providers, advisers and policymakers a clearer picture of how people are saving, and support better long-term outcomes.

"SIPPs are central to how millions of people plan for retirement,” commented Aberdeen Adviser chief executive officer, Richard Denning.

“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.

“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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