Standard Life has raised concerns over the quality of advice given to customers after it found that only 20 per cent of people switching out of its with-profits pensions were aware they might be giving up guarantees.
Of 228 with-profits pension clients surveyed – some with at least 4 per cent annual guarantees on their plans – only 20 per cent say they knew they were giving up guarantees.
Of these 20 per cent, 70 per cent say their adviser had discussed the implications of losing the guarantee with them.
Forty-one per cent of respondents did not think they had any guarantee despite 44 per cent having a 4 per cent guarantee. Similarly, 38 per cent say they were unsure as to whether they had a guarantee while more than half did.
Chief executive Trevor Matthews says: “IFAs might be exposing themselves by not doing the right thing by the customer. The last thing we need is another misselling scandal when we are trying to improve the perception of the industry.”