FINANCIAL advisers are gearing up for a rush on Self-Invested Personal Pensions (SIPPs) - despite Gordon Brown's controversial U-turn.

"There has been a lot of hype about people putting pension funds into 'boutique investments' such as residential property, antiques, fine wines, or vintage cars," said Michael Kelleher, a Christchurch-based investment representative with financial services company Edward Jones.

"In his Pre-Budget Report, Gordon Brown has effectively now done away with this type of investment placed in SIPPs by putting tax charges of up to 70 per cent on them."

Changes will come into effect on the much-publicised A-Day - April 6 2006.

"We still expect there to be a major rush to open SIPPs as there will be advantages for investors," said Mr Kelleher.

"We suggest people need a balanced and diversified range of investments as part of their retirement planning.

"This could include investing on the stock market where it is important to put money into quality companies that have a proven track record of making money and paying dividends.

"Also as part of your plan you should be looking to re-invest those dividends by buying more shares in that company.

"The stock market is where you accumulate money over the long term; it is time in the market - not timing of the market that is important.

"The same is true when it comes to corporate bonds, only buy investment quality bonds from mainstream companies.

"Pension planning will be an increasingly complex issue and it is important people take professional advice before making decisions," he added.

First published: December 19