Personal Pension Plans (PPPs) were introduced back in the late 80s, and the sector now features 50 retail products from 34 providers.
Looking across the recommendations made through Defaqto Engage, the adviser research software used by more than 8,600 advisers in the UK to help their clients make smarter financial decisions, some interesting insights emerge.
At the top of the table sits the Royal London Pension Portfolio PPP, featuring in one in three recommendations.
Richard Hulbert, Insight Consultant at Defaqto, commented: “It is unusual to see a single product dominate a market in this way, especially one as mature and varied as this. A clear sign that Royal London has got its proposition right.”
Aviva is the only provider with two PPPs in the top ten - taking second and eighth positions. With a combined market share of 21% Aviva sits comfortably in second position overall.
Quilter takes third, with Prudential sitting in fourth.
Richard Hulbert added: “The Prudential 11.0% market share is interesting, because in the equivalent review of the SIPP market it attracted 6.1%. Perhaps a reflection that smoothed managed funds are more of a natural fit with those using PPPs.”
There is quite a step down in market share to fifth placed Transact and sixth placed Scottish Widows. The last four placed PPPs appear quite evenly matched with only 0.3% difference between them all.
Top ten recommended PPPs in 2024
Richard Hulbert said: “It’s interesting to note that service quality features in almost all of the due diligence run through Engage and every single PPP in the top 10 holds a Defaqto Gold Service Rating.”
Collectively the top ten make up 85% of all PPP recommendations, while 39 of the 50 PPPs individually attracted less than 1% market share.
Richard Hulbert added: “Looking forward, the PPP sector will shortly turn 40. It remains a fantastic saving solution for consumers looking for simplicity and peace of mind, especially the self-employed.
“However, the dominance by Royal London and Aviva who, between them, take 54.4% of recommendations does not indicate a healthy and competitive market. Let’s hope through adviser feedback and appreciation of the strength of alternative propositions, we start to see a more competitive marketplace emerge in 2025.”
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