L&G support for SIPP property exclusion

19 May 2006
Despite recent criticism of the Chancellor's decision to ban property from Self-Invested Personal Pension (SIPP) schemes, pension provider Legal and General has supported the move.

Andy Agar, head of retirement product development for the company, said that property investment was a specialist area and should be left to experts.

"I think the way Gordon Brown outlawed residential property investment from SIPPs was badly managed," he said, blaming the spin rather than the policy. "I don't think it was a bad thing.

"Investing in residential property, especially abroad, can be dangerous and complicated and some people, because of the different language and the different currency, could have been put at risk," Mr Agar added.

The introduction of SIPPs represents a significant part of the A-Day changes made back in April to simplify retirement funds and open new avenues for investment that were previously restricted due to the old laws.

Although restrictions still apply, such as those mentioned above in relation to foreign property investment, there are now many more options to choose from when deciding what the best way to save for your retirement is.

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