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Endowment update: payouts still falling

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Latest edition of the authoritative Money Management survey show that the final payouts on endowment policies are still falling at almost all life offices.Most are paying out half what they were at the peak - or less. :(


What will you get?

Click on the chart to see the figure for your provider.
Trying to keep it simple...;)
«13456721

Comments

  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    Thanks for depressing me
    "You were only supposed to blow the bl**dy doors off!!"
  • dunstonh
    dunstonh Posts: 119,737 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Note: this only applies to with profits and it only covers a 15 year period and compares a peak value.

    Maturity values are generally increasing year on year for the last couple of years as the recovery bites.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • What a rip off hey! As a front page article in the Sunday Times pointed out recently there is no real explanation for how rubbish the performance of these policies have been. The Sunday Times pointed out that we'd have all been better off putting our money under a mattress.:rolleyes: We still have one of these (Pre 1988). To be honest it was the only way to get on the property ladder in 1987. At that point building societies had waiting lists to borrow money:p . It's hard to believe now, money is available so freely! I will never, ever trust the financial services industry again. I don't believe that they are trying to make money for customers: just shareholders and to make big bonuses for their employees. It's just legalised theft.:(
  • dunstonh
    dunstonh Posts: 119,737 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    there is no real explanation for how rubbish the performance of these policies have been.
    Yes there is and it is well documented. The general media though doesnt let facts and background information get in the way of a headline though.

    I will never, ever trust the financial services industry again.

    Harold shipman killed his patients. You better not get ill as you obviously wont trust doctors either.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I think the mistake was made by trusting the FS in the first place.
  • dunstonh
    dunstonh Posts: 119,737 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The consumers Association (Which?) and the media all promoted endowments as being the best option in the 80s and early to mid 90s. You better not trust the consumer groups either then.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • People actually trust consumer groups? Don't make me laugh.

    There are two things in life you can trust, the two certainties, death and taxes.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Here's the explanation:
    • Removal of tax breaks
    • Switch to lower interest rates and lower equity returns
    • Market fall
    • Introduction of more stringent guarantee coverage requirements
    • Forced swtch into low growth investments to meet the guarantee requirements
    Add in a few who misjudged the markets and the result is a dramatic fall in future value.

    Many of the same factors have been affecting company pensions, resulting in the effective elimination of defined benefit pension schemes for new employees.

    The low interest, low growth economy is also why we have a surge in house prices, since expectetion of prolonged lower interest rates multiplies the available borrowing facilities.
  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    "Maturity values are generally increasing year on year for the last couple of years as the recovery bites"

    Please refer the rest of us to some documentary evidence that backs up this claim. The endowment problem is not now, per se, it's 10-15 years in the future when these policies mature and fail to provide returns to pay off the mortgage they are meant to be covering.
    "You were only supposed to blow the bl**dy doors off!!"
  • Mr_helpful
    Mr_helpful Posts: 3,233 Forumite
    Removal of tax breaks
    Switch to lower interest rates and lower equity returns
    Market fall
    Introduction of more stringent guarantee coverage requirements
    Forced swtch into low growth investments to meet the guarantee requirements

    Over time has not the beloved Stocks and shares ISA suffered from the first 3 of these?
    I like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)
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