More than a quarter of pensions advisers think attempts to simplify the sector have been a hindrance to consumers, with many claiming that it has in fact made the process more complicated, says Investec Private Bank.
But the research shows that despite doubts over the “simplification” of the pensions process, more people are turning to Sipps as a pension product.
Advisers say their clients prefer Sipps because of the greater choice, range of investments available and their flexibility.
Investec’s research says that 39 per cent of advisers have seen increased interest from clients wanting a Sipp proposition.
It says half of advisers believe that Sipps will continue to play an important role in the future of retirement planning.
Investec Private Bank is warning consumers to look carefully at the rate of interest offered on their Sipp, because for example, the cash element could be languishing in a low interest savings account.
Of the respondents, 37 per cent of pensions advisers do not know what rate of interest is being paid on their Sipp and Ssas accounts.
Investec Private Bank head of banking and treasury Linda McBain says: “Whilst it’s encouraging that consumers are still turning to Sipps as part of their retirement planning, these results show that there is still some way to go in terms of reducing the level of complexity faced by both clients looking to set up a pension and volume of administration faced by their advisers.
“For instance there are numerous ‘best-buy’ tables and websites promoting cash rates on standard savings accounts but there is little or no information on the cash rates provided on SIPPs. Consumers need better information in order to get the best possible returns for their pension.”