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  • FIRST POST
    • ALISONBROWN
    • By ALISONBROWN 24th Jan 17, 11:45 AM
    • 5Posts
    • 3Thanks
    ALISONBROWN
    axa sunlife 15 year plan
    • #1
    • 24th Jan 17, 11:45 AM
    axa sunlife 15 year plan 24th Jan 17 at 11:45 AM
    I started 15 years AXA cash builder saving plan in 2002, it was £20 a month for 15 years total £3600. I have seen lots of bad press on this. however I just received a letter saying my policy is due to mature and im to get £5592.89. that sounds to me like a good investment. Has any one else had a good experience with these plans
Page 1
    • dunstonh
    • By dunstonh 24th Jan 17, 11:51 AM
    • 87,250 Posts
    • 52,398 Thanks
    dunstonh
    • #2
    • 24th Jan 17, 11:51 AM
    • #2
    • 24th Jan 17, 11:51 AM
    I have seen lots of bad press on this.
    That is because endowments were obsolete by around 1995. They were selling them long after that.

    however I just received a letter saying my policy is due to mature and im to get £5592.89. that sounds to me like a good investment.
    That is 5.5% per annum.

    You paid 20% tax on the gains on that internally (whereas an ISA would not). You also paid for life assurance you did not need. If that had been fully invested, you would have got more.

    Basically, if you used an S&S ISA instead, you would likely have got more. That is why you read the coverage you have seen.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • ElaineKM
    • By ElaineKM 19th Apr 17, 2:36 PM
    • 1 Posts
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    ElaineKM
    • #3
    • 19th Apr 17, 2:36 PM
    • #3
    • 19th Apr 17, 2:36 PM
    I took out the same policy in April 2002. Over 15 years I paid in £6480. Just had a pay out of £11,169. Not bad eh?
    • Shashy
    • By Shashy 19th Apr 17, 2:50 PM
    • 21 Posts
    • 14 Thanks
    Shashy
    • #4
    • 19th Apr 17, 2:50 PM
    • #4
    • 19th Apr 17, 2:50 PM
    I took out the same policy in April 2002. Over 15 years I paid in £6480. Just had a pay out of £11,169. Not bad eh?
    Originally posted by ElaineKM
    That's less than 4% pa,

    So yes, it is bad.
    • PeacefulWaters
    • By PeacefulWaters 19th Apr 17, 2:59 PM
    • 6,005 Posts
    • 7,276 Thanks
    PeacefulWaters
    • #5
    • 19th Apr 17, 2:59 PM
    • #5
    • 19th Apr 17, 2:59 PM
    That's less than 4% pa,

    So yes, it is bad.
    Originally posted by Shashy
    The money wasn't deposited as a lump sum in 2002.

    The annualised return drip feeding is higher than you suggest.
    Last edited by PeacefulWaters; 19-04-2017 at 3:03 PM.
    • Shashy
    • By Shashy 19th Apr 17, 3:02 PM
    • 21 Posts
    • 14 Thanks
    Shashy
    • #6
    • 19th Apr 17, 3:02 PM
    • #6
    • 19th Apr 17, 3:02 PM
    The money wasn't deposited as a lump sum in 2002.

    The annualised return is higher than you suggest.
    Originally posted by PeacefulWaters
    Fair comment.
    • dunstonh
    • By dunstonh 19th Apr 17, 4:12 PM
    • 87,250 Posts
    • 52,398 Thanks
    dunstonh
    • #7
    • 19th Apr 17, 4:12 PM
    • #7
    • 19th Apr 17, 4:12 PM
    It equates to an average return of 6.8% a year (that is based on monthly).

    I just did a comparison using a stocks & shares ISA with Inv Perp into the Inv Perp High Income fund (not great investing by todays standards but the sort of thing you would expect in 2002). The same period and amount into that after charges came to £14,485. I picked Inv Perp as they did contributions as low as £20pm and they were who I was using back then for the very small contribution stuff.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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