Is my long term endowment plan as bad as it appears ?

welshyyyyy_2

Can anyone tell me if this is poor performance or what I should expect from my endowment plan.
I took out a 25 year endowment policy to cover my mortgage (of £31,000) back in 1989 – paying £41.51 per month. At the time the the lower projection was approx £40,000 and the higher projection was approx £70,000 (however I know this was only a “potential” growth)
The policy is due to mature next year and I have just received an update (due to me moving house a few times over the years I haven’t had any updates but I chased this up recently as I knew it was due to mature soon)
The expected maturity amount is now £21,800 (lower projection) and £22,000 (higher projection) – I don’t have the original mortgage to pay off (which is just as well !) as I just kept the policy on as a savings plan over the years. I will have paid in £12,453 over the 25 years. So the question is, after 25 years is £22,000 a very bad return as it would appear to me or is this just to be expected ?
Thanks

dunstonh

It equates to an annual return of 4.3% (ignoring cost of life assurance). With the cost of life assurance, it would likely bring the average annual return to around 6% p.a.

So, not a bad return. Better than cash savings. Just not good enough to hit target but that is more down to it having, what we now know to be, a high target growth rate. Not bad performance.

welshyyyyy_2

Thanks for the reply, good to know it's not that bad. Not enough for that Aston Martin I remember dreaming of all those years ago but certainly a very nice holiday and some treats at least :-)