Jul 23 2007
Self invested personal pensions (Sipps) are becoming an increasingly popular way for British consumers to save for retirement, one expert has asserted.
John Murray, an advisor at the Bestinvest company, explains that Sipps are becoming more attractive to prospective savers because providers are offering increasingly competitive returns on their products.
And as more and more financial services firms launch Sipp investment offerings, such products have become more "mainstream" as consumers come to see them as a worthwhile way to save, Mr Murray insists.
He said: "It's not that Sipps are suitable for everybody - but nonetheless, there's much more awareness of them; there are more enquiries asking: 'What are Sipps and, is there potential in them for me?'."
"Charges have fallen since about three years ago. Back then a Sipp would have annual charges of hundreds of pounds - so it wasn't cost effective unless you were investing one thousand pounds or more."
Research carried out by the retirement services firm Tomorrow recently found that millions of young British consumers are relying on an inheritance windfall to bring them financial security in later life.
