Hargreaves Lansdown SIPP millionaires have increased from 3,166 to 3,794 in the last two years, as of the end of March 2024.
The median age of these millionaires is 63, with 90 per cent of them men. SIPP millionaires tend to invest more in the UK, the United States, and gilts than their non-SIPP peers.
Hargreaves Lansdown recommends starting your pension contributions as early as possible to maximise investment growth and strategy adjustments over time. Regularly increase your contributions, especially after promotions, and fully utilise employer-matching contributions. Invest for the long term, avoid short-term fads, and keep a balanced portfolio. Build your knowledge using educational tools from your pension or SIPP provider, and consult a financial adviser to navigate tax treatments and avoid fines.
Hargreaves Lansdown head of retirement analysis Helen Morrissey says: “The number of people hitting the magic million in their SIPP continues to grow, with almost 3,800 HL clients currently SIPP millionaires. This is up a fifth from the same time two years ago. It shows the dream of living retirement in comfort is possible, but it takes work – there is no get rich quick formula here – the average age for our SIPP millionaires is 63.
“Our SIPP millionaires took a diversified view of their investments on their way to hitting their goal, with assets spread across global, US and UK. Our millionaires held slightly higher allocations to the UK, US and gilts than non-millionaires.
“We can expect the number of people hitting this important target to continue to grow in future. Auto-enrolment will see more people start saving for retirement earlier, making it more likely they will build up a good-sized pension throughout their career.
“The recent abolition of the lifetime allowance will also act as an incentive for people to continue to build on their pension savings and make full use of all their allowances. Labour’s stance on reintroducing it, should it win the election, brought confusion and uncertainty to people’s planning. The recent news that it has opted not to go down this route has been greeted with a collective sigh of relief from savers and the pension industry alike.
“The real fly in the ointment of this data is the lack of female SIPP millionaires. Only 10 per cent are female. This yawning gender pension gap is down to many factors – most notably lower average pay, part-time work and time spent out of the workforce looking after family members. Over time, these factors conspire to give women smaller pension pots than men. Again, auto-enrolment means more women will be able to build up a pension over their working lives, but more needs to be done – such as the provision of good quality affordable childcare if we are really going to move the dial on this.”
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