A third of pension advisers think their clients are earning less than 6 per cent interest on Sipp and Ssas cash deposits according to Investec.
Research conducted for Investec shows that nearly two in five advisers blame the administrative burden for failure to move clients’ Sipp and Ssas cash to more competitive rates.
The survey, which was conducted among pension advisers, managers and trustees, also reveals that 32 per cent of these advisers are unaware of the rate of interest they receive for their clients’ cash in these funds.
The survey also found that 7 per cent of advisers are likely to remain loyal to a product’s other benefits, even if it pays an uncompetitive rate.
Investec Private Bank head of banking Linda McBain says: “A high proportion of pension fund cash is languishing in accounts offering relatively poor rates of return.
“Following a succession of Base Rate changes over the last year or so, there are now a number of deposit accounts paying significantly more than 6 per cent. However, while it’s crucial to check the headline rate, those depositing cash must ensure that the account is transparent in terms of fees and that it pays a consistently competitive rate.”