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&#39Customer demand for flexibility boosting Sipp sector&#39

Demand for more flexible pension investment options is driving growth in the self-invested pension market, according to third-party administrator PPML.

Its research looking at a cross-section of current and potential Sipp providers found that the ability to take control of contributions is attracting customers.

Investors who are reluctant to place their pensions with one provider are also opting for Sipps.

PPML says the range of investments now available under a Sipp are extensive from unit and inv-estment trusts, managed funds and cash to direct equity investment.

The research found that portfolios managed on a discretionary basis and portfolios using collective investments were the most popular investment option, each favoured by 35 per cent of respondents.

But 57 per cent of fund managers and 66 per cent of online traders believe customers will prefer the self-selected approach.

Managing director John Moret says: “The key benefit of a Sipp is its flexibility, allowing customers to invest their pension in to a variety of investment vehicles.

“This will meet the req-uirements of those who want to take control of their pension in an environment where investors are increasingly financially sophisticated.”

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