Mind The Gender Gap - Men Continue To Dominate SIPPs
01 November 2007
by Chris Smeaton
- 85 per cent of SIPPs are held by men(1)
- Women far more likely to have Wraps
James Hay, the UK's largest SIPP provider, today releases figures showing that the SIPP market continues to be dominated by men. The research, based on James Hay's SIPP accounts, shows that 85 per cent of SIPPs are taken out by men.
|
Product |
M |
F |
|
James Hay SIPP |
85% |
15% |
|
James Hay Wrap(2) |
56% |
31% |
This differential is remarkable. According to Government statistics, 38 per cent of working women contribute to a private pension, compared to 46 per cent of men.(3) Therefore the proportion of women investing into SIPPs - a private pension - is disproportionately low.
By contrast, James Hay statistics show that 31 per cent of Wraps - non-pensions structures which offer a wide range of investments - are taken out by women.
Chris Smeaton, Propositions and E-Commerce Manager, James Hay, said, "These figures are surprising. Despite well-documented evidence around women taking pensions breaks to have children, and gender income differentials, the gender gap is huge.
"One can speculate that this may be attributed to women building up smaller pension pots throughout their lifetime, thereby making SIPPS - traditionally the preserve of the wealthy - too expensive. However with recent evidence indicating the growing wealth of women, such a large differential is unexpected.
"We would urge women with a significant pension pot - in excess of £100,000 - to consider SIPPs as an option for their retirement funds. James Hay believes that SIPPs offer unrivalled control over investment strategies for retirement, allowing investors to match risk and performance to their specific retirement goals. "
James Hay has over £13 billion assets under management with 38,000 investors.
James Hay SIPP is backed by Grupo Santander, the seventh largest bank in the world. James Hay has won over 22 awards for its SIPP product and service in the last six years.
1) Source: James Hay research into SIPP market.
2) Remaining percentage comprised of trusts or undisclosed nominee accounts
3) Source: DWP paper, Women and Pensions, October 2005.