29 Jan 2025 The platform industry in 2024

Normal service was resumed in Q424 after the doom-laden media frenzy of Q324, which led to a rush on tax-free cash from pensions by some customers, and others to maximise their contributions before changes came into effect. In the event, pension allowances were spared Chancellor Reeves’s knife. The final quarter of the year saw gross flows jump 14% to £44bn (the second highest on record) and net flows stayed steady at £5.4bn. However, a lack of confidence in the budget has meant that outflows continue to be elevated and directed into cash and annuities.

Overall, it was a mixed year for the industry. All-platform assets set a new high of £1.1trn (adviser platforms: £697bn). Gross flows rebounded and are close to 2021’s high of £164bn, but net flows were dragged down to £26bn (outflows of £136bn). ISAs and GIAs have borne the brunt — ISAs are in net outflow of £577m and GIAs are just positive at £40m.

Fundscape CEO, Bella Caridade-Ferreira said, “The second half of 2024 would have been more buoyant were it not for budget — investor confidence was on the rise and platforms were upbeat about the outlook. The budget triggered a new wave of uncertainty that will inevitably affect the short-term outlook. The ISA season will be the bellwether for 2025.

“The 2025 outlook may be uncertain, but the underlying fundamentals and long-term outlook remain strong. Consumers need to save for retirement and the changes in the budget will see demand for advice surge. We expect platform assets to grow to £2.1trn by 2029 and the adviser platform component to £1.3trn.”

Look out for the full press release with details of the winning platforms on 28th February 2025.

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Notes to Editors:
The Platform Report is a confidential report published by Fundscape UK Ltd. A total of 19 platforms are included in the analysis. Platform coverage is estimated at 98% of the platform universe.

For further information or background please contact: press@fundscape.co.uk

Download press release here

Photo by BoliviaInteligente on Unsplash