Scottish Widows Endowment

robp

Hello All,

Having just made an overpayment on our mortgage, this has reduced the interest to be paid by £90,000 which means the old Endowment that I have isn't really needed any more.

The Endowment is with Scottish Widows, costs me around £160 per month and has 18 years to run.

The last thing that I heard from them is a Red letter, stating the target 6% growth is unlikely to be met.

I suppose what I'm thinking is this:- How can they make such paltry interest when you can get 6% in a savings account?

They have never asked me if I want to be a little less cautious to help this Endowment grow.....is that ever an option with Endowments or do you have to trust the provider to 'do their best'?

Thanks in advance for any answers.....I can't help thinking my £160 could be invested better somewhere else!

Rob

EdInvestor

Post some info on the endowment

Guaranteed sum assured
Declared bonuses
Surrender value
Maturity date
maturity forecasts

Interest rate on mortgage if you still have one.

dunstonh

How can they make such paltry interest when you can get 6% in a savings account?

Because the underlying assets in which they are invested are not returning 6%. Plus, they have to recover the losses of the last stockmarket crash and have had to increase the capital adequacy to satisfy increased FSA requirements and deal with the new accountancy standards.

They have never asked me if I want to be a little less cautious to help this Endowment grow.....is that ever an option with Endowments or do you have to trust the provider to 'do their best'?

They arent allowed to ask you. That is not the job of the provider but the job of your financial adviser or you. Fund recommendations fall under the remit of advice. If you dont have an adviser then it sits there doing what it was told to do until you say otherwise.

Are there unit linked funds available on the endowment (in addition to Eds questions)?

robp

Thanks chaps, looks like I have some investigating to do.