Endowment cash in or not to cash in

Stubod

Hi all,

Had endowment for 24 years, due up next year.

Have been advised guaranteed min. will be £21k next year, (ie the last year). Current surrender value £25k....."may" get an end of term bonus...may be not ..may get £26k if 3% etc....

still have approx. £650 to pay in the last/ final year...should I hang on, or cash in?...any advise welcome

....ie what end of term bonus is anybody else getting at the mo?..is it worth spending another £650 for?

Thanks for any input.

dunstonh

What is the cost between surrender value and current value/position?

....ie what end of term bonus is anybody else getting at the mo?.

That will depend on the next 12 months performance and who you are with, which version of the WP fund you are in etc.

Stubod

Hi DunstonH and thanls for the reply.

I am probably being a bit dull, but it says current surrender value is £25k
Lat years guaranteed cash sum was £21.5k, and this yeasr guaranteed sum on maturity is basically the same..ie £21.5K

What I am confused about is the current guaranteed value on maturity is a lot less than the current surrender value? ie is it better to cash it in rather than spend another £600, and maybe get less money?..or am I being a bit dull??? (probably).

kidmugsy

What do you expect to do with the money after you get it?

Stubod

..not desperate for it at the mo...so would probably put it into the best savings account I could find......nb I have no problem leaving it to "mature" but just wondered if I may loose more by doing this...plus I still have to put another £600 before I find out.

dunstonh

You have given us the surrender value but we need to know the current value or current position (which it is will depend on type of WP fund). Older plans have a guaranteed basic sum assured (typically around 1/3rd of the target amount) plus annual bonuses plus final bonus. This will give you a current position. From that you can see how the surrender value stacks up. e.g. if the current position is £5k more than the surrender value, then that is effectively your cost of early surrender.