Sipp contributions rise by 35% among 30-39 year olds

The period between January and October saw a 34.7 per cent rise in the average self-invested personal pension (Sipp) contributions among 30 to 39-year olds compared to the same period in 2019, according to Interactive Investor.

The investment platform’s data showed that some other age groups also increased contributions during the period, with the figure rising by 18.3 per cent among 40 to 49-year olds, and 6.8 per cent among 50 to 55-year olds.

However, the youngest and oldest age groups contributed slightly less this year, with a fall in average contributions of 0.3 per cent for those aged 18 to 29 and a fall of 3.6 per cent for those between 56 and 65 years old.

Interactive Investor head of pensions and savings, Becky O’Connor, said: “Our Sipp figures show a significant rise in contributions this year. This suggests that people in their thirties and forties were being sensible with the money they were saving during lockdown and squirreling it away for the long term.

“It’s positive to see these younger investors not afraid to up their investments and take advantage of lower stock prices after the initial crash. Whereas older groups, from this data, appear to have been more cautious.”

Interactive Investor pointed out that Bank of England figures showed that the savings ratio, which is the amount saved as a percentage of income, rose to 29.1 per cent in the second quarter of this year, more than four times higher than its pre-pandemic level.

Figures from the Office for National Statistics’ household spending data showed that UK households stand to save £748.70 over the course of the next month-long lockdown due to reductions in transport, holiday and leisure spending.

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