The poll of over 600 financial advisers found that just over a quarter of clients (27 per cent) were satisfied with any with-profits policies they hold.
Seventy per cent of advisers said Market Value Reductions are the biggest barrier for clients who might otherwise consider transferring out of their with-profits fund. The value of guarantees, apathy, and being unaware of the potential benefits of a transfer were also cited as problematic for people exiting with-profits funds.
Sixty per cent of advisers said that half or fewer clients are aware of their MVR-free exit dates.
Skandia recently launched a with-profits bond analysis tool to help identify penalty-free exit opportunities and offer performance comparisons with any combination of alternative tax wrappers.
Head of proposition marketing Peter Jordan says: “The initial decision to invest in with-profits may well have been a sound one, but times have changed so it is imperative to take another look and see whether the investment is still appropriate or whether a clearer and less opaque proposition would make more sense.”