Rate of growth assumed?

DogTailRed2

Hi,

I asked for a surrender value for my two endowments.
At the bottom of the letter it states;

Rate of growth assumed 4% a year, 8% a year (and gives two estimates should the policy go to maturity).

Are 4% and 8% pie in the sky figures. In the current climate over the next 6 years what sort of growth am I actually going to see?

Thanks,

Dog.

Thrugelmir

The figures quoted for growth are laid down by the FSA.

One option is to make not further payments into the plans, but make the policies "paid up". Then redirect the amounts that would have been paid in premiums towards the mortgage instead.

This way you will benefit if returns pick up but also guarantee that the mortgage balance is reducing.

Endowment policies have performed badly in recent years.

Do not overlook the fact of having sufficent life assurance to repay the mortgage if you go down this route though. Some people unfortunately do die young, often unexpectably.