Sorry - yet another 'should I sell my endowment' thread

Bean_Counter

Sorry for yet another ‘should I sell my endowment question’, but I am struggling to decide one way or the other and I am in the process of renewing my fixed rate this month so really need to decide one way or the other.

Details are:

Prudential (formerly Scot Am) endowment
Start date 17/11/1995
Maturity date 17/11/2020
Monthly premium £65.50
Target amount £40,710

Projected shortfall at 4% return £8,710
Projected shortfall at 6% return £1,110
Projected surplus at 8% return £8,290

That is all the details that were on the plan update letters I receive.

Based on previous general advice from here, I should keep it as Prudential seem to be more or less meeting their targets at the moment (I understand that no-one can predict the future though.)

I also have a Halifax Home Plan PEP / ISA element. Details are:

Start date 1/10/1997
Target date 1/10/2020
Monthly premium £26.82
Target amount £11,065

This forecasts a £365 shortfall at the 7% average forecast used.

I have not contacted either for a settlement figure yet.

A final question would be in relation to endowment mis-selling. I can’t remember the exact conversations when I took these products out, but I had the general idea that there would be some surplus at maturity. Does this general vagueness and the relatively small amounts involved mean that I should not bother pursuing this further.

Any advice gratefully received. Thank you in advance.

martinman3

For the endowment you will need to post details of what fund(s) it is invested in, bonuses earned, sum assured, the very latest projections and a current surrender value. You will need to ring up Prudential and get them to also send these to you in writing.

When you have these also contact www.apmm.org to find out what would be offered for the policy if you traded it instead of surrendering.

EdInvestor

Bean_Counter wrote: »

Projected shortfall at 4% return £8,710
Projected shortfall at 6% return £1,110
Projected surplus at 8% return £8,290

You need to ring them up and ask for a surrender value, and also tell us the interest rate you will be paying on your mortgage.Also check the projections, the middle figure looks wrong.