Terminal Bonus Rates for 2011

dunstonh

the terminal bonus rates in 2010 did not reflect 2009 performance. There was quite a lot of holding back due to fears of a double dip. Final bonuses tend to be a bit like oil tankers in that they do not turn quickly. They tend to be slower to reduce/remove the final bonus in drops and slower to put it back again slower after a major event. I personally expect to see 2011 final bonuses to be higher as the lag will be more in line with what is typical.

paulsmith109

dunstonh wrote: »

the terminal bonus rates in 2010 did not reflect 2009 performance. There was quite a lot of holding back due to fears of a double dip. Final bonuses tend to be a bit like oil tankers in that they do not turn quickly. They tend to be slower to reduce/remove the final bonus in drops and slower to put it back again slower after a major event. I personally expect to see 2011 final bonuses to be higher as the lag will be more in line with what is typical.

Many thanks for the reply. On balance, I am inclined to agree with your theory that the next annual bonus L&G publish in Feb 2011 will be higher. I think I `ll grit my teeth, keep my fingers firmly crossed, and hang on for another couple of months .....

dunstonh

paulsmith109 wrote: »

Many thanks for the reply. On balance, I am inclined to agree with your theory that the next annual bonus L&G publish in Feb 2011 will be higher. I think I `ll grit my teeth, keep my fingers firmly crossed, and hang on for another couple of months .....

Remember it doesnt always work that way.

I had someone who was looking to surrender earlier in the year but decided to wait until late this one in case the final bonus was increased in a half year adjustment as they sometimes are. It didnt happen. The endowment only increased by a little more than paid in. yet in the meantime their ISA and pension investments increased by over 10% on top of what was paid in.

You have to accept that these sort of decisions are a judgement call that sometimes will be right and sometimes will be wrong. The tone of your posts suggest you understand that. However, many people do not and they assume that financial advice/decisions is about getting it right every single time. Its not. its about making a judgement call based on what you know and what you think may happen (but may not).

paulsmith109

dunstonh wrote: »

Remember it doesnt always work that way.

I had someone who was looking to surrender earlier in the year but decided to wait until late this one in case the final bonus was increased in a half year adjustment as they sometimes are. It didnt happen. The endowment only increased by a little more than paid in. yet in the meantime their ISA and pension investments increased by over 10% on top of what was paid in.

You have to accept that these sort of decisions are a judgement call that sometimes will be right and sometimes will be wrong. The tone of your posts suggest you understand that. However, many people do not and they assume that financial advice/decisions is about getting it right every single time. Its not. its about making a judgement call based on what you know and what you think may happen (but may not).

I agree entirely. If only my crystal ball would work ....

ccomley

We're in nearly the same boat.

Our endowment is due up in JULY of 2011.

Our statement from December of 2010 says the terminal bonus (at that time) is 74%, up from 68% the year before.

What I can't find out is, how often the TBR changes! Is it daily, monthly, annually? What are the chances it will still be 74% come July?

It hadn't even occurred to me it might be worth cashing it in THIS close to maturity date until someone pointed me at this thread...