Clients boost cash in SIPPs

Savers have increased the cash allocation in their SIPPs as part of a defensive move, according to Investec Private Bank.

In the past 12 months, over half of pension administrators surveyed say clients increased the cash allocation of their SIPP.

Almost a quarter of those surveyed say they witnessed a cash boost of up to 25% among their clients while a further 13% said it reached as high as 26-50%.

Regardless of the size of the deposits, over a quarter of administrators say their clients receive less than 1% on the cash element of their SIPPs, while around 13% say their clients' money earns over 2% interest.

Lionel Ross, of Investec Private Bank, says the cash interest rates on most SIPP accounts will have changed significantly in the past 18 months.

"It is crucial, therefore, that those responsible for administrating them check that these accounts are paying a competitive rate."