Analysis from Equifax Touchstone shows that new pension investments (excluding transfers) were up by 110.4 per cent in 2015, rising to GBP13.6 billion from GBP6.5 billion in 2014.
The data, which covers more than 90 per cent of the UK’s leading life and pensions companies, shows that including transfers, total pension investments stood at GBP27.7 billion, up by 25.8 per cent on the previous year (2014: GBP22.0 billion). Transfers across all pension products were up by 10.4 per cent, with GBP15.6 billion of pension funds transferred during the year.
Following the introduction of pension freedoms in April 2015, GBP2.09 billion has been invested into flexible drawdown pension products via single premiums and transfers. Single premium flexible drawdown inflows were up 98 per cent in the last quarter to GBP116.1 million, a value increase of GBP57.5m compared to Q3.
SIPP inflows also grew in 2015, up by 10.9 per cent. Total SIPP inflows for the year were GBP14.6 billion compared to GBP13.2 billion in 2014.
Geoff Greensmith (pictured), Director at Equifax Touchstone, says: “It’s positive to see that pension inflows have been immune to market volatility, with savers increasing their investments throughout 2015. The last year has been a rollercoaster-ride for the pensions world. Pensions are going to remain in the headlines and keeping on top of changes will be a priority for advisers in the year ahead. They will need to help clients navigate through the legislation to ensure the best outcome for them. We anticipate strong inflows for 2016 as investors seek out the best solution for both new investments and their existing pension savings.”
Equifax Touchstone utilises intermediary and customer profiling tools to enable financial services providers obtain a detailed understanding of their marketplace and client base.