James Hay: £579 million a year lost in poor SIPP accounts

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James Hay: £579 million a year lost in poor SIPP accounts

Thu 24th Jul 2008

Investors in self invested personal pensions (SIPPs) could be missing out on over £579 million interest a year in poorly paying SIPP cash accounts, according to James Hay.

The financial services provider says that SIPP investors are moving parts of their portfolios into cash due to volatility in the market.

It says cash now comprises over 35 per cent of some SIPP portfolios and estimates that up to 300,000 investors could be missing out on interest due to inferior rates.

James Hay's eSIPP special deposit rate is 6.90 per cent.

Chris Smeaton, propositions and ecommerce manager at James Hay, said the differences in cash rates on the market are "quite substantial".

He said the company's research showed that around 15 per cent of SIPP portfolios are held in cash.

The Scotsman newspaper recently offered advice about choosing a SIPP.

It suggested considering the choice of investments, whether the provider allows the investor to use his/her preferred providers and advisers and what choices are available at the time of retirement and beyond.

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