SIPP investors enjoy active management of retirement savings

SIPP investors enjoy active management of retirement savings

26 August 2010 / by Rachael Stiles

Investors are choosing SIPPS because they want to actively manage how their pension is invested, that's the result of research from Barclays Stockbrokers.

According to the research, more than a quarter of investors said that the main reason they chose a SIPP (Self Invested Pension Plan) is so that they could actively manage where their pension savings are invested.

For a fifth of SIPP holders, supplementing their main pension savings was the primary motivation for choosing this type of investment, while a third said they are confident that they can achieve better returns through a SIPP than by using a pension fund manager.

But, Barclays is concerned that 12 per cent of investors do not currently have any pension provisions in place, despite the importance of retirement planning.

Due to volatile market conditions and the end of final salary pensions, "savings must work harder to achieve the returns needed to ensure a comfortable retirement", says Paul Inkster, head of product at Barclays Stockbrokers.

"Investors who are actively managing their savings and are engaged with the investment markets can sometimes feel frustrated with passively watching the returns generated by pension funds, particularly if they feel unable to take advantage of market conditions."

Therefore, Mr Inkster explained, SIPPS are "ideal for experienced investors who want to take control and manage their own pension pots. SIPPs are the most tax efficient trading account available and allow investors the flexibility to build a retirement portfolio to match their appetite for risk."

© Fair Investment Company Ltd

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