Why does PH have an obsession with SIPPs?

[Edinburger]

I work in financial services and I sometimes visit the Finance section on PH, but I rarely post here for various reasons.

One thing which always amazes me here is the PH obsession with SIPPs. Why is that?

There are various types of pension products and in fact there are various flavours of SIPPs. Some will be appropriate for some people, but not others.

Costs vary too and if someone doesn't need the full SIPP flexibility and functionality then why not invest in, for example, an Individual Personal Pension which invests in funds or collectives? Why pay for a full SIPP when you'd never use it, or when you can upgrade to a SIPP in X years when you do need it? Or save in an ISA if there's unused allowance?

It's a bit like someone saying "I need a car to go to Tesco" and people calling "get a Porsche 911"!

Whenever any poster askes about retirement planning the majority of responses are "you need a SIPP!". Why? I know there are some regulated financial advisers who post here but most posters aren't?

I'm just curious

[Edinburger]

PurpleMoonlight said:

It's almost always the cheap end SIPP's being suggested. Sippdeal and Hargreaves Lansdown.

Whether or not they remain cheap for much longer with the FCA trying to put them out of business via the back door is a different matter though ....

Edited by PurpleMoonlight on Saturday 12th April 14:40

You can get some (probably most) PPs cheaper than SIPPs, if price is a factor.

My point is that many people take SIPPs out and then only invest in funds - which you can do cheaper in a PP. So they're often paying for functionality and flexibility that they just don't need. If that was the result of a recomendation by an IFA, he'd be pulled up for it by the regulator.

[Edinburger]

Simpo Two said:

I moved to a SIPP last year because I wanted to get out of an inflexible Skandia pension and my (then) IFA recommended a SIPP. IIRC the fee is £180pa, which sounded very cheap. No idea how often they stir the pot for that though.

What do you mean "stir the pot"? Review your investment strategy? Rebalance? £180 p.a. for a SIPP is probably on the cheaper end.