Scottish widows [ex lloyds tsb]fsavc

ASW

I have been paying into the above fsavcs [approx £73/month] for several years giving a total value of approx £28000 at present and i am within a couple of years of retirement[hopefully].

Simple question : Is it worth continuing these payments as i find the figures quoted for annuity very poor.
I assume the costs will eat away at the value more quickly if i stop paying into them?

Thanks

dunstonh

Simple question : Is it worth continuing these payments as i find the figures quoted for annuity very poor.

The example projections use a number of assumptions on the annuity rate. Typically nowadays they use very cautious rates and often the type of annuity that provides the lowest income. i.e. joint with RPI. Sometimes they convert that to todays money rather than future money as well.

The age the plan is set illustrate to matters as well. If its illustrating to age 55 for example, then it will have dire annuity rates compared to one illustrating to 65.

I assume the costs will eat away at the value more quickly if i stop paying into them?

That is not possible with a mono charge contract and virtually all legacy SW plans are mono charge (the ex Lloyds ones were changed to mono charge around 2001, if they were not already).