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L&G Endowment red letter
bobfromengland2
Posts: 3 Newbie
Hi
Latest red letter received for a policy due to mature January 2017.
Normal stuff about projected shortfalls at the standard growth rates, but for the first time the following statement appears..
"There are lower rates that apply to your plan and have been displayed in the following table"
Then goes on to say low rate 2.2%,mid rate 4.2%,high rate 6.2%
Any explanation as to why. and why now?
Thanks
Latest red letter received for a policy due to mature January 2017.
Normal stuff about projected shortfalls at the standard growth rates, but for the first time the following statement appears..
"There are lower rates that apply to your plan and have been displayed in the following table"
Then goes on to say low rate 2.2%,mid rate 4.2%,high rate 6.2%
Any explanation as to why. and why now?
Thanks
0
Comments
-
Any explanation as to why. and why now?
Periodically, the regulator reviews the projection rates it tells companies to use. It looks at the economic cycle and trends and decides from there. We are in a period of low interest rates and volatile markets. So, lowering the projection rates in this period is prudent.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.0
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