The rise in popularity of Self-Invested Personal Pensions (SIPPs) since 2015 is not a problem, according to Ros Altmann, the former Pensions Minister. Statistics released yesterday showed that SIPPs have become the most-used destination for pension transfers since the Pension Freedoms were introduced. As a lot of transfers into SIPPs do not involve taking advice from a professional adviser, there has been some concern about whether people knew what risks they might be taking.
FTAdviser reports –
“But Ros Altmann, who was pensions minister from 2015 to 2016, said it was “not surprising” that Sipps were becoming more popular, and added there was no reason to assume this was a bad thing…. “The Sipp wrapper offers more flexibilities than traditional pensions or annuities, and the whole purpose of freedom and choice is about more flexibility, freedom and choice. Many of the older style products do not allow the new flexibilities?,” she said… Gregg McClymont, the former Labour spokesperson for pensions, and current head of retirement savings at Aberdeen Asset Management, also emphasised the positives of the rise of Sipps…. In particular, he said they were an indispensable tool for the self-employed. “It’s important to remember that for the growing army of self-employed people in the UK a Sipp is currently their only pension option outside of state provision,” he said.”