Aviva with profits policies

EdInvestor

http://www.ifaonline.co.uk/ifaonline/news/1433733/aviva-cuts-final-regular-profit-bonus-rates


Despite being one of the better regarded funds, Aviva's WP fund averaged returns over the last 5 years of only 4.6%.

So when looking at forecasts of likely maturity values bear that in mind, as it was formerly thought that Aviva policies would scrape into the 6% range.

dunstonh

Whilst the underlying fund has only had that amount of growth, those that took policies out 5 years ago have seen in excess of 5% a year net returns.

There is a fear that Aviva may be moving the returns more to the final bonus rather than the annual return. At the end of the day, over the long term, this shouldnt make much difference unless you happen to draw the money out after a major drop. Some could also benefit by withdrawing after a peak but that isnt the point of with profits and if the purpose and benefit has gone, then you may as well not be in it.