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&#39Industry scandals pushing investors into Sipps&#39

Recent scandals in the financial services industry have persuaded many investors to take out do-it-yourself pensions, according to Personal Pension Management.

Research commissioned by PPML shows that investors are keen to exercise more control over their pension investments. It says predictions of 500,000 self-invested personal pension plans by 2010 may be understated.

Executive chairman John Moret says the latest figures show the Sipp market has grown by nearly 40 per cent in the last 12 months. There are now 90,000 Sipps, including hybrid Sipps, with total assets of more than £16bn.

Moret says over 50 per cent of Sipp customers have earnings of less than £50,000 a year, meaning it is no longer a niche product for the wealthy.

The research shows investors want diversification, confidence, choice, control and transparency.

Moret says: “The scale of recent financial scandals has increased the desire by many to diversify their savings providers. This is true not only for their pensions but also investments and other tax-efficient savings. Today, investors wish to have products with greater transparency of charges and investment returns. They are wary of funds in just one asset class or with one provider. The answer for their retirement products is simple – a Sipp.”

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