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Gross sales of ISAs nearly doubled in 2021 and SIPP gross sales had been up by a powerful 15%, the most recent retail funding information from the FCA has revealed.
Regardless of the pandemic, 2021 product gross sales figures counsel that funding and pensions did surprisingly effectively as traders used spare time and money to put money into tax environment friendly merchandise.
ISA gross sales practically doubled from 389,674 to 769,247 through the yr and SIPP gross sales leapt by 15% yr on yr, up from 740,418 plans in 2020 to 851,963 in 2021.
Pension revenue drawdown continued to be a mainstay for pension savers with 218,100 folks getting into drawdown in 2021, up 21% from 180,654 in 2020.
Annuity gross sales additionally rose by 7% year-on-year, from 41,293 to 44,161.
AJ Bell, which analysed the figures (Retail Investments Product Gross sales Knowledge dashboard, mentioned that whereas many had been hit financially by the pandemic there have been additionally hundreds of thousands of “unintentional savers” in employment who discovered extra money left of their financial institution accounts every month as leisure and holidays grew to become unavailable.
Tom Selby, head of retirement coverage at AJ Bell, mentioned: “Throughout the peak of the pandemic and subsequent nationwide lockdowns, hundreds of thousands of ‘unintentional savers’ lucky sufficient to stay in employment noticed their financial institution balances bolstered as spending on issues like going out and holidays plummeted.
“These unintentional savers had been undoubtedly one of many key driving forces behind a near-doubling of ISA gross sales from 2020 to 2021. The primary quarter of 2021 was significantly eye-catching, with nearly 300,000 ISAs purchased throughout that three-month interval alone.
“The world has in fact moved on considerably for the reason that flip of the yr, with hundreds of thousands of Brits now going through as much as a cost-of-living disaster which is squeezing their potential to spend and save for the long run.”
Regardless of unhealthy publicity in current instances, SIPPs continued to develop as a well-liked pension possibility. AJ Bell, which presents SIPPs, mentioned that with SIPP gross sales up 15% year-on-year they had been “comfortably the preferred product amongst retail retirement savers.”
AJ Bell believes the rising recognition of SIPPs is mirrored within the retirement revenue market, with drawdown now firmly established because the “dominant” possibility.
The corporate mentioned that stronger markets throughout 2021 inspired extra folks to remain invested and use drawdown for retirement revenue nevertheless it believes that can be examined by the Russian invasion of Ukraine and the worldwide financial points that is inflicting.
The agency added that annuities stay viable however gross sales in 2021 had been decrease than 2015 simply over 44,000 new plans bought, up 7% in comparison with 2020. Lately annuity charges have begun to extend however AJ Bell mentioned it didn’t count on main development in annuities to return.
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