Anger over last minute Pru endowment shortfalls

EdInvestor

http://www.thisismoney.co.uk/mortgages-and-homes/endowments/article.html?in_article_id=487912&in_page_id=55


Policyholders say they have been lulled into a sense of false security by being told their policies were on target to pay off the mortgage throughout, only to find they now have to find thousands of pounds extra.

Most Scot Amic policies are now in amber or red mode, with the vast majority green only a year or so ago.

dunstonh

Pru issued the projections in the format set by the FSA. The same format that every provider has to use. The projections include the warnings that you could get back less than this. Unit linked endowments would have been hit a lot worse than Pru.

The article is sensationalist in that it picks a good provider and makes out they are at fault when there is no fault here. Danny Cox from HL should know better. Most people on the HL platform would have seen drops in excess of 25% in the last year. Yet Pru are down just 6-10%.

Most Scot Amic policies are now in amber or red mode, with the vast majority green only a year or so ago.

Of the 15,073 Pru plans maturing this year, 4,025 will not meet their repayment target. There are 37,090 Scottish Amicable (part of the Pru) maturing this year. Of these, 20,800 will mature for less than their planned target. Currently, 94% of Scottish Amicable policies are either red or amber. At Pru, it's 83%.

Those stats are not too bad when you consider the events of last year.