Investors could ditch £3.4bn of with-profit bonds
Investors will be able to withdraw £3.4bn in with-profit bonds this year without paying a penalty fee, according to Skandia.
The pension provider says around £10bn held by 350,000 investors in with-profit bonds will reach its tenth anniversary during 2012.
Skandia says savers can withdraw around £3.4bn of these assets this year without paying a market value reduction charge.
Head of proposition Graham Bentley (pictured) says: “It is not in the interest of life offices to pay out large bonuses as it adds to the guaranteed value of their customer’s investments which in turn adds to the life offices’ liabilities. This restricts their investment freedom and hinders future growth prospects.
“People holding with-profit bonds should check with their financial adviser whether their policy has a penalty free exit date and if it is in their best interest to encash it.”