Mar 2 2009
Those with protected rights money are increasingly more likely to transfer it to self-invested personal pensions (SIPPs), new research shows.
Findings from Fidelity FundsNetwork show that one in four of its platforms now include protected rights money, which equates to around £26,000.
"Many protected rights holders are voting with their feet - where they are not shackled by exit fees they are looking to shed existing funds and choose SIPPs instead," comments Peter Hicks, head of UK retail sales at Fidelity International.
He adds that SIPPs have several benefits over old-style insurance company funds, including improved investment options and transparency.
There are also no "harsh exit penalties", the expert adds, which may make them appealing to those interested in retirement planning.
Last month, Fidelity FundsNetwork announced it was to slash the annual cost of its SIPPs, which it hopes will save people around £260 a year on the charges for the life of the plan.
