Sipps users urged to check their rates
Anyone adding cash to a self-invested personal pension (Sipp) has been urged to check the rates of interest they stand to receive.
Financial services firm James Hay has suggested that more and more people are using cash-based Sipps assets as a way of saving for retirement and that there are significant differences in the interest rates available.
Some Sipps providers are offering only around three per cent interest to their customers on cash assets, while others provide returns closer to six per cent on an annual basis, according to the company.
"As our research shows, around 15 per cent of Sipp portfolios are held in cash and investors need to consider cash rates when they chose a Sipp," said Chris Smeaton, propositions and ecommerce manager at James Hay.
"In volatile markets, investors frequently asset allocate to the safer havens of cash," he added.
A report from LV= last week suggested that financial advisors around the UK are taking an increasingly strong interest in Sipps as a product that can help their clients in saving for retirement.
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