Endowment - cancel or leave

pwllbwdr

Hello all. I have an Aviva (was CU) policy.

End date 28/03/2021
Target 77200
Premium 136 monthly (inc CI)
Current surrender £17107
4% 47300
6% 57200
8% 68900
Mortgage at 1.99% at the mo.
Promise max 8612

Any thoughts?

theartfullodger

a) take coin..
b) Designate "heads" cancel, "tails" leave.
c) Toss coin
d) Take recommended action...

Anyone know the length of my piece of string>???
- Supplementary questions: What changes to endowment taxation will take place between now & march 2021. What will inflation be between now & 2021??

Cheers!

Lodger

glitter123

We paid off our mortgage last year and left our two endowments in place as savings schemes. Neither of them will pay out anything like the target amount according to the information we've been given.

dunstonh

This endowment doesnt seem too bad. The 8% projection plus mortgage promise hits target. So, given the events of the last 18 months, its not in that bad a position. With it being Aviva, you would estimate that the 6% is within its grasp and long term the 8% is possible although you would be safer working on 6%.

Crystal ball job but this one is not too bad.

EdInvestor

pwllbwdr wrote: »

4% 47300
6% 57200
8% 68900

If you cashed in this policy now and used the lump sum to reduce the mortgage also paying in the endowment premiums to the mortgage up till maturity, your total return would be £43,782, which is well below even the lowest projection.

This is because your mortgage rate is so low.:)

Not much point in doing anything at present, wait until interest rates start rising in a year or two and then review the position.In the meantime the endowment should benefit from recovery in the markets.