The UK’s SIPP market is close to topping £500bn invested and five million customers and could be a £1trn market by 2030, according to a new report published today.

MoretoSIPPs, the specialist consultancy run by SIPP industry veteran John Moret, reckons the SIPP market could grow to more than £750bn within the next five years.

Mr Moret said: “It is clear that over the last five years the SIPP market has grown enormously. The growth has been almost entirely in the simple streamlined SIPP sector, while the complex SIPP sector has plateaued.”

He said much of the growth has been driven by investment platforms which now administer SIPP assets worth almost £200bn. Life companies also remain major players.

The report revealed that the number specialist providers willing to accept non-standard investments has fallen, although total complex SIPP assets still exceed £100bn.

In total MoretoSIPPs estimates there are around 60 active SIPP providers, of which fewer than 40 administer complex SIPPs.

Some of the other conclusions of the report are:

• Two-thirds of SIPPs operate on a non-advised or direct basis. This proportion is expected to grow
• Less than 15% of SIPP investors have vested their benefits
• There is a new breed of fintech SIPP providers some of whom have started to make a breakthrough - particularly in the non-advised space
• It is expected that the number of complex SIPP providers will reduce by up to 50% over the next five years

Mr Moret said: “The growth in non-advised SIPP numbers and the staggering finding that less than 15% of SIPP investors have vested their benefits suggests there is a huge technology-driven opportunity for providers, existing and new, in developing services focussed on the decumulation market particularly for non-advised investors.”

He said the SIPP market has changed dramatically in the last 10 years partly in response to regulatory pressures, with the pressures continuing with the Consumer Duty and its likely impact.

“For example, the recent FCA concerns over the retention of interest margins and cash account charges is likely to lead to impaired revenues for many SIPP providers and potentially an increase in other charges.”

Despite the regulatory pressures, MoretoSIPPs is optimistic about the growth prospects for the overall SIPP market and believes it is realistic to project that the total SIPP market could grow to more than £750bn within the next five years.

Mr Moret said: “If the 'one pot for life' solution materialises so that SIPP providers can participate in some form, then it is entirely feasible that the market could grow to £1trn by 2030.”