Consumers boost pensions with sideline SIPPs

Around 20% of SIPP holders use the product as a supplement to their main pension, a Barclays Stockbrokers study has found.

The research reveals a quarter of investors cite the freedom to manage their investments as the main reason for using SIPPs.

A third of investors also go as far as saying they can achieve better returns than a professional pension fund manager.

"Pension savings have been hit hard in recent years by volatile market conditions and the demise of final salary pension schemes," says Paul Inkster, head of product at Barclays Stockbrokers.

"Therefore savings must work harder to achieve the returns needed to ensure a comfortable retirement.

"Retirement planning remains a priority for many of our clients and we continue to see investors, who have the necessary experience and skills, taking control and actively managing their pension savings.

"Investors who are actively managing their savings and are engaged with the investment markets can sometimes feel frustrated with passively watching the returns generated by pension funds, particularly if they feel unable to take advantage of market conditions."