ii sees a big jump in millennial and women SIPP investors
More women and young people have taken control of their pensions this year. We explain why.
17th December 2020 10:30
by Rebecca O'Connor from interactive investor
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More women and young people have taken control of their pensions this year. We explain why.
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More women and younger people took control of their pension and where it is invested over the year to date (to end November), according to interactive investor.
The UK’s second biggest DIY investment platform recorded a rise of 108% per cent in the number of women aged between 35 and 44 with Self-Invested Personal Pensions (SIPPs), along with a 104% rise for men.
In the 45-54 age category, the percentage increase in female customers was 108%, compared to 82% for men.
The number of SIPP investors between the ages of 25 and 34 – both men and women - also increased – by 200% and 185% respectively, compared with the same period last year.
It should be noted that the strong percentage increases among women investors comes from a lower base – some 70.5% of ii’s customers are men.
It isn’t just younger women taking control of their retirement pots. Among investors aged 55-64, new ii SIPP accounts were up 89% for women and 66% for men. And among the 65+ category, it was a similar story (89% women, 62% men).
As well as the higher percentage growth of women and millennials among new interactive investor SIPP accounts, another interesting statistic is customer performance. Over the year to date to 30 November 2020, ii SIPP holder accounts were up a median average of 3.8 per cent, compared with an average ii customer return in a volatile market of -1 per cent (which still compares very favourably with the FTSE All Share decline of 13.2% over the same period (Source: Morningstar)).
Becky O’Connor, Head of Pensions and Savings for interactive investor, said: “These figures suggest in a year when some people had more time for financial admin, younger workers and women especially, were able to finally grasp the nettle and get their pension to the top of their to-do lists.
“It’s possible that the rise among older people approaching retirement was less pronounced, as they are likely to have already done some pension sorting already.
“SIPPs offer more control for people who want to choose but also options for beginner investors. They are also attractive because they can represent good value for money.
“Greater engagement among pension investors earlier in their careers will give people more chance of reaching their retirement goals.
“Women in particular have been the focus of targeted messaging around the gender pension gap for a number of years now, so it’s great to see signs that this important message could be sinking in.
“The trend also suggests that women who may have taken time out of work to have children but then returned to the workplace are keen to make up for lost time on their pension savings. Women now hit peak earnings at around 40, according to the ONS, after the age that those who start families will have had children.
“It’s possible that younger pension investors are more receptive to the trend towards investing pensions sustainably. Unlike the limited options available through most workplace schemes, with a SIPP, you can choose from a wide range of funds, including many sustainable or positive impact ones.”
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