Apr 30 2007
While the popularity of the self-invested personal pension (Sipp) is reported to be on the rise, it has been claimed that this uptake could be increased further with greater education regarding last year's A-Day legislation.
Research from Fidelity FundsNetwork reveals that 29 per cent of pensions advisers believe the Sipp is becoming the pension of choice for the more well-off Briton.
However, 22 per cent added that investors appeared to lack awareness of the opportunities Sipps provide.
David Dalton-Brown, head of FundsNetwork, said: "A-Day brought significant positive changes both in the form of increased contribution limits and increased control of how benefits can be taken."
He added that A-Day changes have resulted in improved flexibility and greater contribution limits for investors, with some investors missing out on tax-benefits as a result of their lack of awareness of the these transformations.
Last month, Aegon reported a 140 per cent increase in sales of Sipps, a rise the life insurance and pensions company attributed the "A-Day effect".
