As Self Invested Personal Pensions (SIPPs) turn 25, they revolutionise retirement once again

A quarter of a century after it was invented and laid the foundations for pensions freedoms, the SIPP continues to innovate; now embracing alternative finance in order to give consumers greater choice in saving for their retirement.

In the 1980s the inventor of the SIPP, Francis Moore, found the pensions market too restrictive and wanted to offer consumers greater control and better value. It was obvious that in order to obtain these freedoms, a new vehicle for income in later life was necessary.

Speaking on the 25th anniversary, creator of the SIPP, Francis Moore, says: “It was clear that consumers needed a greater say in where their money was invested. The market simply did not cater to people who wanted a greater level of flexibility in order to provide for their retirement.

“The result was the creation of the SIPP – a form of pension plan that enables the holder to actively choose and manage the investments held within it. Launched in March 1990, following the 1989 Budget, today over one million people hold a form of SIPP[1], with £100 billion currently invested within them.[2]

SIPPS Embrace A New Dawn As Pensions Freedom Looms
SIPPS Embrace A New Dawn As Pensions Freedom Looms

As the retirement story in the UK evolves and people reconsider their pension investments, the SIPP is entering a new life stage. Following changes to regulations governing SIPPs, consumers are now free to have an even greater choice in where they invest their money.

Remarking on the future of the SIPP, Francis Moore says: “As the SIPP celebrates 25 years it is fantastic to see so many people taking control of their retirement and getting the value they deserve.

“The inclusion of a wider range of products such as new peer-to-peer investments from providers like RateSetter will empower an aging generation who want to diversify their retirement savings portfolio and achieve even greater value from their retirement savings.”

[1] 1.2 million figure quoted by Citywire, July 2014,

[2] £100 billion figure quoted by the FCA, August 2014,

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