Endowmwnt Projections

[Deleted User]

Does anyone know how to get a projection on their endowment (one of the 4%, 5.5% or 8% figures) based on the "Minimum Guaranteed Amount"?

I have a with profits Friends Provident endowment which the current MGA is approx £36k, the surrender value is approx £18k & the lowest projection (4%) is about £50 more than the current MGA.

Why can't we get realistic projections that mean something rather than those based on the Surrender Value? I know why the SR is used, because the FSA says so but next year (hopefully) the projections will be less than what the policy is guaranteed to pay out already - what use is that? :cool:

dunstonh

Why can't we get realistic projections that mean something rather than those based on the Surrender Value?

The plans that do this are typically the older style plans that were never designed or intended to provide ongoing projections. As the software of these is systems is often 30 or more years old, they cant re-write it cost effectively. So, doing it from the surrender value is the easier option.

I have seen projections that show figures lower than the guaranteed minimum. So, it does happen from time to time.