Changes in pension law give more freedom

New pension rules have produced fairer and freer investment choices for the public, says a financial expert.

Since October 1st investors have been able to place their funds in self-invested personal pensions (Sipps), meaning they can now invest their pension pot wherever they wish.

Prior to this, investors could not transfer their protected pension earnings into Sipps because of state interference.

Research by Kilik & Co had found that 78 per cent of people had no pension strategy whatsoever, while 60 per cent of those who did have a pension fund did not know how much was in it.

Hannah Edwards, head of new clients at the partnership, said that historically insurance company funds had been passively managed.

"If you [actually] look at relative performance of insurance plans to more independent fund plans, such as the invescos - and so on, then it means it is a more sophisticated investment arena," she added.

All personal pensions are now under the control of the Financial Services Authority.

Published on: October 7, 2008

Did you like this article? Share it!