ISA TRANSFER DEMAND BOOM AS SAVERS LOOK TO SWITCH
March 23, 2017
- Advisers see surge in enquiries about cash and stocks & shares ISA transfers
- One in four ISA savers would consider transferring from existing provider
Advisers are seeing a surge in demand for ISA transfers as savers worry about a lack of real savings choice, new research* from MetLife shows.
Its study among specialist advisers shows demand for cash and stocks & shares ISA transfer advice is rising. Around 35% of advisers say they have seen an increase in demand in support with cash ISA transfers while nearly two out of five (39%) report a rise in demand for stocks & shares ISA transfers.
The adviser experience mirrors the growing discontent among savers with up to one in four ISA customers** - the equivalent of five million people*** - considering moving their money because of worries over performance, MetLife research estimates.
Cash ISA customers are nearly four times as likely to consider transferring their funds, the study found, with 19% of cash ISA savers considering moving compared with 5% of stocks & shares ISA investors.
However, advisers are worried about the lack of saving and investing options for clients considering transferring – around two out of five advisers say cash ISA alternatives are hard to find as rates in general are too low while 22% are concerned that an equity market slide could hit savings.
Simon Massey, Wealth Management Director at MetLife UK said: “Transferring ISA holdings in this environment makes sense. There is an important role for advisers to help clients with finding alternatives which suit their goals.
“With more than £518 billion*** invested in ISAs it is a potentially massive market in which advisers can really add value for clients. However, savers need to be made more aware of the options available. Particularly those who want to retain a level of certainty they get from cash but also want to benefit from the potential for growth from stocks & shares ISAs
“The need for advice in ISA transfers has never been stronger, particularly when choices are being narrowed by the lower for longer interest rate challenge.”
Advisers are particularly concerned about the need for ISA advice in the run-up to retirement, the research shows. Around 47% say they would consider transferring client funds into ISAs which provide guaranteed capital lumps sums and offer the potential for growth ahead of retirement.
MetLife’s Guaranteed ISA comes with an income or capital guarantee enabling savers to benefit from greater certainty over their investments or future income while still having the potential for growth.
Savers benefit from a guaranteed income for life or guaranteed lump sum at the end of a chosen term, regardless of market fluctuations. Savers also retain access to their funds when they are needed and are provided with a guaranteed death benefit. The initial minimum investment in the Guaranteed ISA is £15,000.
Notes to Editors
* Research carried out by Pollright among a sample of 107 specialist retirement advisers in February 2017
** Research carried out by Consumer Intelligence using an online methodology to question 1,071 employed adults aged 18-plus. Fieldwork was carried out between January 30th and February 2nd 2017
- The value of your investment, and any income taken from it, can go down as well as up and you may get back less than you invested.
- The MetLife Secure Capital Option provides a guaranteed death benefit or amount at the end of a chosen term. If you switch out or cash in your investment before the end of this term, you will receive the underlying value of your investment.
- The MetLife Secure Income Option provides a guaranteed level of income for life and death benefit. If you switch out or cash in your investment you will receive the underlying value of your investment. Any payment you ask MetLife to make from your policy to a Financial Adviser will reduce the value of your investment, and proportionately, any amounts guaranteed.
- Although you can access the funds at any time, you should consider a MetLife ISA Portfolio as a medium to long-term investment, ideally five years or more.
- Tax treatment depends on your individual circumstances and may be subject to change in the future, with or without notice.
The references to “MetLife” are general references to the group as a whole and not to specific entities within the group. MetLife in the UK comprises a number of different companies.
MetLife Europe d.a.c. is an Irish insurance company based in Dublin with Dirk Ostijn as Chief Executive Officer. MetLife Europe d.a.c. provides financial products into the UK via its UK branch, of which Dominic Grinstead is the branch manager.
MetLife Europe Services Limited is an Irish services company, which distributes MetLife Europe d.a.c.’s products to Independent Financial Advisers via its UK branch. Key personnel within the UK branch of MetLife Europe Services Limited are Simon Massey, Wealth Management Director, Tom Gaynor, Employee Benefits Director and Claire Oldstein, Marketing Director.
MetLife Europe d.a.c. (415123) and MetLife Europe Services Limited (472359) are incorporated in Ireland and are authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority. The registered address of both companies is 20 on Hatch, Lower Hatch Street, Dublin 2, Ireland and the UK branch address for both companies is One Canada Square, Canary Wharf, London E14 5AA. Website: http://www.metlife.co.uk
MetLife Europe d.a.c. is affiliated with US-based MetLife, Inc. (NYSE: MET), which through its subsidiaries and affiliates (“MetLife”), is one of the largest life insurance companies in the world. Founded in 1868, MetLife is a global provider of life insurance, annuities, employee benefits and asset management. Serving approximately 100 million customers, MetLife has operations in nearly 50 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.