A majority of with-profits investors are unhappy with the performance of their fund, and more than one million say they will not invest in with-profits again, according to Managing Partners Limited (MPL).
Research carried out by MPL suggests around 6.2 million with-profits investors are not pleased with the performance of their with-profits fund in 2009, up from 5.5m in 2007.
Furthermore, 1.33 million say they do not plan to continue investing in their with-profits fund, though the figures have fallen in recent years as market value reductions (MVRs) have been implemented.
Jeremy Leach, managing director of MPL, says: "For the last three years we have charted the relentless decline of with-profits in the UK.
"With-profits' failure to deliver on promises of steady returns has been exposed in the wake of the terrible market returns seen in recent years. But many people still invest in this outdated form of investment, which reveals they are at a loss to know where else to go."
Leach says investors should look to other asset classes to achieve steady returns, as with-profits has suffered from stock market stagnation in the past decade.
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
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