Mind the gender gap – women continue to shun SIPPs

James Hay, UK SIPP provider, has released figures showing that the SIPP market continues to be dominated by men.

The research, based on James Hay’s SIPP accounts, shows that 85 per cent of SIPPs are taken out by men.

This differential is remarkable. According to Government statistics, 38 per cent of working women contribute to a private pension, compared to 46 per cent of men. Therefore the proportion of women investing into SIPPs – a private pension – is disproportionately low.

By contrast, James Hay statistics show that 31 per cent of Wraps – non-pensions structures which offer a wide range of investments - are taken out by women.

Chris Smeaton, Propositions and E-Commerce Manager, James Hay, said, “These figures are surprising. Despite well-documented evidence around women taking pensions breaks to have children, and gender income differentials, the gender gap is huge.

“One can speculate that this may be attributed to women building up smaller pension pots throughout their lifetime, thereby making SIPPS – traditionally the preserve of the wealthy – too expensive. However with recent evidence indicating the growing wealth of women, such a large differential is unexpected.

“We would urge women with a significant pension pot – in excess of £100,000 - to consider SIPPs as an option for their retirement funds. James Hay believes that SIPPs offer unrivalled control over investment strategies for retirement, allowing investors to match risk and performance to their specific retirement goals.”