SIPP investors take retirement savings into their own hands

Investors taking control of their retirement savings in a SIPP are sufficiently confident in their investment choices and believe that they can outperform the professionals. A Barclays Stockbrokers survey revealed almost nine out of ten SIPP investors (89%) opened their SIPP account because they were confident they could outperform a professional pension fund manager.

Further research from Barclays Stockbrokers also revealed investors are increasingly taking control of their retirement savings. Over half (54%) of SIPP investors chose to save for retirement in this way because they wanted the ability to take control of their investment decisions. Flexibility is also key for many SIPP investors with one in seven (14%) attracted to these savings vehicles because of the ability to adapt their portfolios to different market conditions and to invest in different asset classes.

Barbara-Ann King, Head of Investments at Barclays Stockbrokers, says: "As we continue to experience volatility in the financial markets it is encouraging when investors who have the necessary experience and skills take control of their pension savings and taking a bullish approach to shaping their retirement. It is important that people plan sufficiently for their retirement and by taking control of their pension investments they can proactively work towards getting the best returns, which is increasingly challenging in the current environment. Higher earners especially will have to make their money work even harder for them following last week's Budget statement. Throughout the market turmoil of the past year we have consistently seen our more knowledgeable clients take an ‘Instividual' approach; acting like experienced institutions in their decision making and taking control of their investment choices.

"The Barclays Stockbrokers SIPP is ideal for investors who are attracted to controlling their own pension pot and who have the skills and experience to do so. SIPPs are the most tax efficient trading account available. They share the same benefits as personal and stakeholder pensions, but have the additional benefits of tax relief on contributions, tax-free growth, and tax-free lump sums. The control and transparency offered by a SIPP is clearly important to our clients; it puts the investor in control 24/ 7 and can be as simple or as complicated as the investor wants, offering a wide range of investment opportunities, the ability to diversify investments and providing full transparency of how the pension pot is invested."