Sipps 'could encourage a younger generation to make savings'

Posted by Sarah Glenister

Self-invested personal pensions (Sipps) are currently being marketing to people who are aged 45 and over, it has been claimed, but the products should be taken to a younger generation to prompt them to make savings.

Senior pensions policy manager for Standard Life Andrew Tully argued the products had many upsides for those looking to put money aside.

"Sipps have the key benefits of choice, flexibility and control in terms of where people invest their money and how they take it out," he said.

Employers are also increasingly using them for workplace pension schemes, including BT, Logica and KPMG.

However, he believed the industry had a "big opportunity" to move its focus from an older generation "where the money is" to those between the ages of 35 and 45 to encourage them to make savings.

This comes after DeFaqto recently released a free guide to Sipps to help independent financial advisers give advice to customers.