Endowment is rubbish

Pobby

Been paying £107 per month since 1988 into a Scottish Life endowment.Current surrender value is £25,930,basic benefit£19,200,total bonuses added is £10,080.It carries life cover at£60,000.Worked out I would be better off in encashing and putting the payment plus keeping up the monthly contribution into a savings account.They predict @ 3.5% it will be worth £38,500@ 7.5% £47.900.It matures in 5 years.Around 60% of the fund is in fixed interest and not quite a quarter is in equities.Any thoughts please??

EdInvestor

Pobby wrote: »

.Worked out I would be better off in encashing and putting the payment plus keeping up the monthly contribution into a savings account.Around 60% of the fund is in fixed interest and not quite a quarter is in equities.Any thoughts please??

If you don't need the life cover, and can beat the return then it's sensible to leave.Like many of the old former mutuals, Scottish Life is down the bottom of the payout list.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/05/12/cmendow12.xml

At least they will have paid you a bit of a windfall, but IIRC they even reneged partly on that, which just shows you the trouble they were in when they demutualised.

Not quite a zombie fund, but almost.