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Endowment Final Bonus Dropped Rate Last Friday.
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gaynore
Posts: 1 Newbie
Today I have received the maturity value of my Endowment with Friends Provident. This was a small endowment taken out 25 years ago, for £3500. Today the payout will be £2800. I contacted Friends Provident who informed me that the Final Bonus Rate dropped last Friday from 62% to 43.5% which is why my payout is so low. Is there anything I can do. Do I have to accept this amount.?
£700 shortfall is an awful lot on £3500. I have a larger policy with Friends Provident which matures next year, and am wondering now whether to sell it.
£700 shortfall is an awful lot on £3500. I have a larger policy with Friends Provident which matures next year, and am wondering now whether to sell it.
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Do I have to accept this amount.?
Yes. Investment returns fluctuate and the last 12 months have not been good for investments.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
20% shortfall - it could have been worst."You were only supposed to blow the bl**dy doors off!!"0
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I have been tracking my endowment with FP month by month to see if it was worth keeping or whether to cash it in and pay it off the mortgage and was rather p*&&ed off to see the drop last week. They promote the WP funds as being able to smooth out market fluctuations etc etc yet overnight wiped 5% off the value.
..........Insert amusing tagline here..........0 -
FP havent promoted WP for quite a long time now. Many FP endowments are unitised with profits and the unit linked range is available to switch into.
FP's WP fund is a weak option. There is no point hanging on hoping for the best with that one.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
It is a unitised wp, but the way the other funds have been performing it doesn't inspire to move to any of them either. I think a guaranteed 5.29 (First Direct) return in the mortgage offset looks the safest bet in the current climate............Insert amusing tagline here..........0
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It is pants and I have now cashed in this policy. £66.96 per month since August 1999.
17/12/2002.... £ 1,329.33
12/01/2003.... £ 1,381.00
14/03/2003.... £ 1,397.25
18/05/2003.... £ 1,544.83
02/06/2003.... £ 1,592.50
02/07/2003.... £ 1,641.39
03/09/2003.... £ 1,780.60
07/10/2003.... £ 1,830.99
04/07/2004.... £ 2,420.37
30/03/2005.... £ 3,027.65
18/10/2005.... £ 3,425.76
15/10/2006.... £ 4,062.13
01/11/2006.... £ 4,115.49
02/12/2006.... £ 4,168.91
02/01/2007.... £ 4,222.35
01/02/2007.... £ 4,275.85
18/03/2007.... £ 4,652.75
02/04/2007.... £ 4,701.91
11/05/2007.... £ 4,776.46
02/06/2007.... £ 4,825.66
01/07/2007.... £ 4,887.60
19/07/2007.... £ 4,900.37
23/07/2007.... £ 4,973.98
01/08/2007.... £ 4,973.98
29/08/2007.... £ 5,036.72
30/09/2007.... £ 5,101.10
29/10/2007.... £ 5,165.55
05/12/2007.... £ 5,230.05
01/01/2008.... £ 5,294.60
02/03/2008.... £ 5,437.87
26/03/2008.... £ 5,502.19
25/04/2008.... £ 5,566.56
22/05/2008.... £ 5,631.03
24/06/2008... .£ 5,695.50
25/07/08.... £ 5,469.98
Lost out on that one. At least the shares were good.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
I have been tracking my endowment with FP month by month to see if it was worth keeping or whether to cash it in and pay it off the mortgage and was rather p*&&ed off to see the drop last week. They promote the WP funds as being able to smooth out market fluctuations etc etc yet overnight wiped 5% off the value.
I've been doing the same with my FP endowment, checking the surrender value after each monthly payment. After July's payment the surrender value dropped to £8,953 from £10,407 a month ago - almost £1,500!
My surrender values have risen every month for the past year in a falling stock market so I presumed that there was little volatility resulting from stock prices and most of the holdings were of a fixed interest/cash nature - so was going to sell up. Previously there seemed to be an annual correction on the anniversary of the policy but this is obviously now not the case.
Anybody know how the valuation process works and when? Or is it just when they feel like it? I'm now back to the same valuation as 15 months ago having put in almost £600 in monthly payments since.0 -
FP are a complete dead loss - would never invest with them.. They released interim bonus statement earlier in the month which knocked all the values back. Don't hang on to FP WP in the hope of things getting better, get the money out now. (All IMHO, of course
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