Is it all gloom and doom? No. Many Sipp clients use drawdown and during the year have been hit with up to 50 per cent reductions in income. Drawdown could do with a fundamental policy review but the government’s u-turn of reverting back to 120 per cent of GAD is a welcome short-term measure, although no time has been given for this to be implemented. Although not Sipp specific, let us not forget the significant simplification achieved by the Department for Work and Pensions by scrapping contracting out from 6 April 2012.
Finally, 2012 is reckoned to be the year in which the number of Sipps achieved recehes the one million mark, which in itself represents significant growth and a fantastic success story. It moves Sipps from the niche to the mainstream market and as such there has to be some acceptance of change to swim in the ocean rather than the pond.
Events of 2012 represent a challenge for Sipps, but their concept is sound and the industry is resourceful, such that it is hoped that future years may be described as wonderful years, or as the Queen might put it, “Anni Mirabiles”.
Robert Graves, is head of pensions technical services, at Rowanmoor Group
