should I surrender my endowment or not?

jakebullet64

Hi

I am looking for advice/thoughts/views/suggestions on our endowment please. We have received a letter from Aviva informing us that the endowment that was targeted for £29,000 plus bonus, maturity 2015, unfortunately now shows a risk of shortfall of £7,900. We have enquired what todays surrender value would be, unfortunately its only £17,198 and we will lose the 6% maturity promise of £3,500 if we surrender. We have done some calculations and if we continue to pay the premiums we pay in £3,749 to maturity. The statement states " we may make a top up payment from our mortgage endowment promise, providing the investment return on our free reserves is sufficient" Does this sound like a £3,500 guaranteed promise to you?
We are in a dilemma, do we surrender and put the £17,198 in an isa and continue to pay premiums into a savings a/c or continue to pay into Aviva? Is anyone in the same boat as us? What would you do?

hcb42

so if you cash out today you get £17198?

Or keep it going, pay in another £3800 and get something like £22K, including the £3.5K bonus? In other words you make a £1K on the next £3800 (which isn't a bad return as it goes)

If I have interpreted that right, I would take the money