Scot Am/ Prudential Endowment

hansi

I just requested a valuation of my policy which matures in May 2010 to cover a mortgage of 25k.

Surrender Value £21353.00

Projected values on Maturity

4% £22800.00
6% £23300.00
8% £23800.oo

Lets hope things start looking up in 2009/10!

olly50

I a valuation on 24th March 2009 of my Prudential/Scottish Amicable policy which matures in January 2010 to cover a mortgage of 20k.

Surrender Value £18278.00

Projected values on Maturity

4% £19100.00
6% £19400.00
8% £19700.00

I requested one on 17th October 2008 and the values were

Surrender Value £20599.00

Projected values on Maturity

4% £22000.00
6% £22600.00
8% £23100.00

On 7th November the surrender value was £20709

A loss of about £2500 on the surrender value and about £3000 on the expected maturity value. This was quite a shock seeing as I decided to leave the money in Prudential, because a letter earlier in 2008 said "Prudential's view is that 6% each year is a reasonable assumption for the long term future investment growth' so I decided that 6% was better than any bank or building society was giving.

urbantus

Hi

Have either of you tried to get mis selling compensation

Urby

dunstonh

Prudential's view is that 6% each year is a reasonable assumption for the long term future investment growth' so I decided that 6% was better than any bank or building society was giving.

Remember that the 6% they refer to is an average. Between 2001 and 2007 it was in double digits per year. Last year was a loss year. You have to to take the bad years, nothing years and good years and average them out. The 6% figure is within the potential of Pru.

EdInvestor

If you don't want to lose more, you may like to consider surrendereing now.Accumulated terminal bonus will be paid.

olly50

dunstonh wrote: »

Remember that the 6% they refer to is an average. Between 2001 and 2007 it was in double digits per year. Last year was a loss year. You have to to take the bad years, nothing years and good years and average them out. The 6% figure is within the potential of Pru.

Thanks for everyones comments
It's the terminal bonus they have really hit, because the paid up sum assured has increased from £13931 to £14140 between October 2008 and March 2009, I assume that the difference between the paid up sum and the surrender vaue is the terminal bonus, in which case the terminal bonus has been reduced by about 36%.
It looks like Prudential has taken a great chunk out of everyones terminal bonuses and put them into their company profits. I don't suppose there is much I can do about it, so I am inclined to leave the money with the Pru and hope that they don't reduce terminal bonuses further. I also hope that the projected 6% is reached between now and January 2010.

EdInvestor

olly50 wrote: »

It looks like Prudential has taken a great chunk out of everyones terminal bonuses and put them into their company profits.

No.What has happened is that the value of the assets in which your money is invested has fallen.You will be aware that all markets have dropped severely over the last 2 years.

I don't suppose there is much I can do about it

You could surrender now.

I am inclined to leave the money with the Pru and hope that they don't reduce terminal bonuses further. I also hope that the projected 6% is reached between now and January 2010.

There is a delayed action effect in with profits fund so your endowment value is probabbly currently reflecting market falls which took place a year or so.Thus, there are more falls to come.Even if the Pru WP fund made 6% over the next year, you will still almost certainly find that your fund value will be lower at maturity than it is now.

olly50

Thanks Edinvestor - I have decided to cash it in