Do I have to take my matured Endowment on maturity date

NickA1959

My Royal London Endowment in due to mature on 28th March 2020.
They have asked me where I want the money deposited when it does. If I don't reply they say they will hold the money until I contact them.
With the stock market plunging in the last couple of weeks the final amount on the 28th March will no doubt be less then it would have been if it had matured on the 28th February. My question is, if I leave the money with Royal London until the stock market hopefully recovers later in the year will my fund continue to grow/lose or will it be frozen at the prices as they stand on 28th March?

Voyager2002

Firstly, an endowment is not simply a share portfolio. There is a mechanism for 'smoothing', meaning that to a considerable extent you are shielded from market movements.

Secondly, I am fairly confident that your investments will have been sold in order to get ready the cash sum for you, meaning that it will be frozen until they pay it to you. You can of course ask them whether it could remain invested, but if this were an option they would probably have offered it to you.

Thirdly, there is of course nothing (other than prudence) to stop you investing the full amount into the stock market as soon as you receive it, and so perhaps benefitting from a rally.

Old_Lifer

When  an endowment reaches the maturity date it becomes payable,  effectively becomes cash   and you no longer have a fund. 

If you do not claim the money it will be held on deposit for you until you do claim.

dunstonh

Nothing stops you taking the maturing it placing it where you want it to go elsewhere.