A year of change

If you thought that A-Day would bring a period of calm and stability to the pensions arena then you thought wrong.

As we draw towards the end of 2007 we can look back on a year characterised by much change and innovation not only in pensions but across the whole retirement planning sector.

SIPPs have undergone regulation and continue to enjoy strong growth. However, it will be up to providers and advisers over the coming year to ensure the good reputation that SIPPs have so far enjoyed remains intact and doesn't become subject to allegations of poor service or, even worse, mis-selling.

The equity release sector has also seen much change with the regulation of home reversion plans finally bringing them on a level footing with the lifetime mortgage. It's pleasing to see that both of these products have continued to grow, further evidence of the continued image change that this market has undergone. It would seem that advisers and their clients no longer see equity release as a last chance option and more like a viable and useful retirement planning tool.

The at-retirement phase has also enjoyed more focus over the past year. This has been helped by the increased sales in drawdown as well as the advent of the variable annuity. While conventional annuities remain the most popular choice for many retirees it has been great to see a growing awareness among advisers and their clients of other options. The variable annuity in particular will continue to generate much interest as more providers look to get involved in this burgeoning market.

2007 has also been a year of increased regulation. In addition to the regulation of SIPPs and equity release advisers are also getting to grips with the principles led legislation of treating customers fairly (TCF) and MIFID. Working with these will present advisers with challenges for a long time to come.

And finally over the past few weeks we have seen the Pensions Bill introduced bringing us one step closer to the introduction of personal accounts in 2012.

All in all it has been a very busy year. However, while all these developments bring their fair share of challenges there remain plenty of opportunities for advisers to continue to add value to their client's retirement planning.

So whether 2008 is as eventful as 2007 I hope it is a happy and prosperous one for all Retirement Planner readers. I'd like to thank you all for your support over the past year and I look forward to your continued feedback and comment in the New Year.

Wishing you all a merry Christmas and a happy new year.

- Helen Morrissey, Editor

PS - Be sure to log on to our new website which launches on 7 January 2008.

www.retirement-planner.co.uk.