Life Assurance with Growth has just matured

Tinkerbell637

Hi, A With Profits Life Assurance Policy I took out in 1981 has just matured. I feel it's done rather well even if it did take 38 years! However, out of curiosity, I would like to be able to calculate how much I would have now if I'd been paying the premiums of £9.66 a month into an ordinary "Regular Saver" for all of that time. Of course interest rates have varied quite a lot during that period and there was tax relief on the older premiums too so I'm struggling to find a calculator on-line that can take account of the changing interest rates (forget the tax relief for now). Anybody know of one?
Thanks.

masonic

You could plug your £9.66 and 38 years into this calculator and play around with the interest rate to come up with an equivalent rate for your maturity figure:
https://www.thisismoney.co.uk/money/saving/article-1633419/Monthly-lump-sum-savings-calculator.html

Tinkerbell637

Thanks for that. It worked out at about 5.7% average. Don't know whether that's good, bad or indifferent but considering it included life insurance it "feels" pretty good.

masonic

Tinkerbell637 wrote: »

Thanks for that. It worked out at about 5.7% average. Don't know whether that's good, bad or indifferent but considering it included life insurance it "feels" pretty good.

RPI inflation over the same period averaged 3.7%, so the inflation-adjusted return was about 2%. This is better than you would have achieved in cash, and if you factor in charges likely to be around 2% per year, then it would be in line with average returns from medium-high risk investments.