MetLife predicts ISA transfer surge
SAVERS are increasingly considering transferring their cash or stocks and shares ISAs, amid concerns about their performance.
Research from provider MetLife found financial advisers are seeing a surge in demand for ISA transfers as savers worry about a lack of real savings choice.
Around 35 per cent of advisers said they have seen an increase in demand for support with cash ISA transfers, while 39 per cent reported a rise in demand for stocks and shares ISA transfers, according to the research.
Cash ISA customers were found to be almost four times more likely to consider transferring their funds, the study found, with 19 per cent of cash ISA savers considering moving compared with five per cent of stocks and shares ISA investors.
However, advisers are also 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 per cent are concerned that an equity market slide could hit savings.
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“Transferring ISA holdings in this environment makes sense,” Simon Massey, wealth management director at MetLife UK, said.
“There is an important role for advisers to help clients with finding alternatives which suit their goals.
“With more than £518bn 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 and 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.”
The research comes in a week that has seen a flurry of Innovative Finance ISA (IFISA) launches, with platforms eager to take advantage of the usual uptake in ISAs before the end of the tax year.
Our IFISA guide shows what is currently on offer.
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