Calculator needed on phoenix zombie endowment

EdInvestor

bennyuk wrote: »

...unless by "return" you mean money saved, over 15 years.

Correct.

You probably won't be able to flog this policy but you can always try.

https://www.apmm.org

The 7.5% figure for growth on unit trusts is the one mandated for projections by the regulator.It is based on economic growth plus inflation plus the stockmarket dividend yield net of tax (and thus unit trusts attract a higher figure than endowments as their growth is tax free).

History tells us these numbers accurately predict equity returns. If the long term trend in any one of these components changes, the figure will go up or down - the big reduction in inflation has bought the overall number down in recent years.

dunstonh

The projection rates for tax free investments are 5, 7 & 9%. For taxable investments, it is 4, 6 & 8%.

Providers can use the mid rate by itself or the lower and higher together or all three together. Unit trusts have no requirement to have any illustration or projections.

Providers can use lower rates than those set by the FSA but they cannot use higher rates.