Self Invested Personal Pensions (SIPPs) are being managed improperly by two thirds of investors according to Investec. New research by the asset manager reveals that just 37 percent of investors have adequate time in order to sufficiently manage their personal pension.
The lack of time spent by people on managing their SIPP has resulted in Investec dubbing the mechanism as a ‘Self Ignored Personal Pension’.
Investec’s survey also highlighted that approximately 55 percent of SIPP owners do not fully understand the charges associated with their SIPP, with approximately 15 percent looking to take professional advice.
The combination of a lack of time, lack of knowledge and lack of understanding regarding charges is resulting in the ineffective management of a SIPP and investors paying for the benefits of a SIPP of which they are not utilising.
Investec has urged anyone that doesn’t feel they have adequate knowledge of a SIPP to seek the help of a professional adviser.