The number of self-invested personal pensions (SIPPs) will hit two million by 2015, says Suffolk Life.

Director of marketing at the group, John Moret, predicted that by 2015 there will be one million SIPPs and one million workplace SIPPs, at the annual Henry Stewart SIPP and Retirement Conference.

He said these SIPPs will be split between less than 50 providers, and a quarter of all SIPPs will be ‘execution only’.

“Change is in the air,” he said, “the pensions industry is likely to change significantly in the next three to five years for many reasons. Politically we’ve already seen proposals to change annuity compulsion, public sector pensions and state pensions, and potential changes to annual contribution limits. These will help to align those reaching retirement age be they in the public or private sector.”

Meanwhile, Hornbuckle Mitchell has announced that it will accept transfers of funds from income drawdown clients under the age of 55, but that advisers should be aware that ‘proportionality’ rules affecting the use of Protected Rights funds could cause problems for some clients.

The decision was made following clarification by HM Revenue & Customs that transfers of funds by those aged between 50 and the minimum pension age of 55 will not be regarded as ‘unrecognised’ and subject to a 55 per cent tax charge.

Mary Stewart, director, said: “The situation now is more helpful because in many cases funds can be transferred without being subject to tax charges. The remaining downside is that tax charges will apply if the client takes income from a fund that has been transferred.”

She added that Protected Rights make things far more complex because of the proportionality rules that stop their value being eroded faster than other funds. “This means they may prevent you from switching off income or force you to switch it on which in turn could trigger tax charges.”

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