George Ladds, head of investment and pension research at Fair Investment Company, comments on the figures and wonders - how many of these SIPPS are true SIPPs?
He says:
"The pension market is changing rapidly and people are becoming more financially savvy, as a result people are more confident about taking charge of their own savings and investments, which includes pensions.
"SIPPs (Self Invested Personal Pension) are flexible pension schemes that allow investors to manage their own investment strategy and the investments in the plan and therefore take complete control of their own pension.
"The flexibility of SIPPs, combined with the fact they, like other pension plans, have significant tax benefits - the government contributes 20% of gross contributions, while high rate tax payers can claim back even more - means they appeal to a wide range of investors.
"I am not particularly surprised that SIPPs are being recommended so often by IFAs because they do have a wide appeal. Feedback from our clients suggests that SIPPs are a popular choice and will continue to be so going forward, which is why we will soon launch our own SIPP service through Fair Investment Company Ltd.
"But I do have one word of warning - many "SIPPs" are just glorified personal pensions with extended fund choice championed by the "SIPP" provider or "IFA". True SIPPs are ones that give investors freedom across all asset classes including, for example, passive and active funds, ETFs, structured products and investment trusts to name just a view.
"I just wonder of the 82% of IFAs who recommend SIPPs how many are really using them for what they are designed for? I fear many of these clients may just be investing in a basket of funds."
