Millions of savers in with-profits policies have been paid far less than their money earned, losing sums of as much as ?50,000, according to new research. The cuts were made when people cashed in their endowments early, or stopped paying into pension plans.

Companies used the profits, of up to ?1bn a year, to boost payouts on maturing policies and improve their positions in the all-important performance league tables. The research, to be published in full by Money Management Magazine next week, reveals the biggest offenders as Legal & General, Scottish Amicable, Scottish Mutual, Royal Sun Alliance and Royal London.