Insurance News Archive
Fat cats lead Sipp investment
High earners and those who have received City bonuses have been leading investment into Self-Invested Pension Plans (Sipps), according to latest research.
Tom McPhail, head of pensions research at Hargreaves Lansdowne, told Reuters that investment into the plans had been frantic.
"We are seeing plenty of cheques of 100,000 pounds plus going into Sipps and a lot of people are putting in the maximum for the year -- which with tax relief takes them up to 215,000 for the tax year," he said.
Nevertheless, he claims that investment into Sipps is not just centred on those earning high salaries.
"Admittedly it is the higher earners who have jumped at the chance to invest 100 percent of their year's income into a Sipp but we are also seeing plenty of cheques for £20,000 and less," he told Reuters.
Mr McPhail concluded that the introduction of Real Estate Investment Trusts (REITS) and property syndicates may also push up the demand for Sipps in the future.
© Adfero Ltd
25 Apr 2006