axa sunlife 15 year plan

ALISONBROWN

I started 15 years AXA cash builder saving plan in 2002, it was £20 a month for 15 years total £3600. I have seen lots of bad press on this. however I just received a letter saying my policy is due to mature and im to get £5592.89. that sounds to me like a good investment. Has any one else had a good experience with these plans

dunstonh

I have seen lots of bad press on this.

That is because endowments were obsolete by around 1995. They were selling them long after that.

however I just received a letter saying my policy is due to mature and im to get £5592.89. that sounds to me like a good investment.

That is 5.5% per annum.

You paid 20% tax on the gains on that internally (whereas an ISA would not). You also paid for life assurance you did not need. If that had been fully invested, you would have got more.

Basically, if you used an S&S ISA instead, you would likely have got more. That is why you read the coverage you have seen.

ElaineKM

I took out the same policy in April 2002. Over 15 years I paid in £6480. Just had a pay out of £11,169. Not bad eh?

Shashy

ElaineKM wrote: »

I took out the same policy in April 2002. Over 15 years I paid in £6480. Just had a pay out of £11,169. Not bad eh?

That's less than 4% pa,

So yes, it is bad.

PeacefulWaters

Shashy wrote: »

That's less than 4% pa,

So yes, it is bad.

The money wasn't deposited as a lump sum in 2002.

The annualised return drip feeding is higher than you suggest.

Shashy

PeacefulWaters wrote: »

The money wasn't deposited as a lump sum in 2002.

The annualised return is higher than you suggest.

Fair comment.

dunstonh

It equates to an average return of 6.8% a year (that is based on monthly).

I just did a comparison using a stocks & shares ISA with Inv Perp into the Inv Perp High Income fund (not great investing by todays standards but the sort of thing you would expect in 2002). The same period and amount into that after charges came to £14,485. I picked Inv Perp as they did contributions as low as £20pm and they were who I was using back then for the very small contribution stuff.

yrrek2

i took out my plan in 2003...due to expire september 3rd..2018. i decided against most peoples advice cashing it in and carried it on to the end...i paid in £6480 ...im so glad i did as i am to get a final payout of £12000...which is pretty good in my eyes and im happy with that ..