The Sipp market is set to grow by 15 per cent annually, according to Suffolk Life.

By the end of 2013, the firm expects there to be one million Sipps on the market.

The prediction follows research conducted by the firm at the end of last year which found over 90 per cent of advisers expected the Sipp market to grow by at least 10 per cent.

There are currently over 800,000 Sipps in place and many are being switched between providers.

Chris Jones, from Suffolk Life, made the predictions at a meeting of the Association of Member-Directed Pension Schemes this week.

He said: “The Sipp market has consistently grown year on year and will continue to do so by at least 15 per cent per year ensuring that one million Sipps will be in the market by the end of 2013.”

Mr  Jones, product and marketing director at Suffolk Life, also turned his attention to the growth in Sipp regulation.

He said: “As an industry we are now experiencing increased regulatory scrutiny. Sipp providers need to be transparent, robust and secure, providing investors with good governance and risk management to ensure we are trusted to help provide for retirement.”

Mr Jones also predicted that the market would see more mid-market and simple Sipps for customers who did not require the functionality of a full Sipp.

Suffolk Life has already established over 16,000 Sipps, including its new Smart Sipp which offers a choice of platforms within one Sipp wrapper.