Anyone with a 25 year endowment which matured recently ?

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  • Magsy99
    Magsy99 Posts: 12 Forumite
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    @thrugelmir Yes I agree you could easily get into trouble but we were fairly savvy and never had these problems. Always lived within our means.

    Theres 2 ways you can go when you've never had money..go mad or go without lol
  • fewcloudy
    fewcloudy Posts: 617 Forumite
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    edited 7 April 2018 at 6:09PM
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    First of several endowments has just matured.
    This one was with Royal London, (was originally Abbey National, then Phoenix, before ending up as Royal London).

    Term was 20 years for £14850
    Included critical illness cover of £55000
    I received misselling compensation of about £2000 8 years ago.
    Premium each month was £60

    Total Unit Value £9910
    Terminal Bonus £2160
    Maturity Value £12070

    Thoughts?

    I'm surprised after years of doom and gloom and projections of around 8k. And the critical illness cover was more than a third of the premium, about £25 IIRC.
    Feb 2008, 20year lifetime tracker with "Sproggit and Sylvester"... 0.14% + base for 2 years, then 0.99% + base for life of mortgage...base was 5.5% in 2008...but not for long. Credit to my mortgage broker
  • TrickyDicky101
    TrickyDicky101 Posts: 3,513 Forumite
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    With the compensation received looks like a decent result to me.
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    Projections have been understating the likely outcome for many years with a lot of providers. At one point, one provider was using a low projection that was lower than the guaranteed minimum surrender value.

    I wonder how many endowments were surrendered that really ought to have been kept (not necessarily going to hit target but much better than the projection suggested).

    We are seeing something similar with pension projections at the moment with the projected figures being about half the income that they are likely to provide.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Imma_Number
    Imma_Number Posts: 183 Forumite
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    CGNU/NU/Aviva With Profits


    Sum Assured:...~£11100
    Regular Bonus:.~£ 6400
    Final Bonus:...~£ 7700 (~44%)
    MEP:...........~£ 5700
    Total:.........~£30900

    Target: ~£ 37500
    Premium: ~£ 47.00

    I think the return is ~5.9%pa (If I've calculated it correctly)
  • fewcloudy
    fewcloudy Posts: 617 Forumite
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    Standard Life Homeplan this time...

    Term 25 years, target £35150
    Premium £55.60

    50\50 With profits endowment

    Value of your invested linked units £15165
    Value of your Life With Profits units £8743
    Final Bonus £5633
    Mortgage Endowment Promise £3749

    Maturity Value £33292

    There were years when annual statements had the pay-out projected to be around 23k, assuming medium growth rate.
    So even though it has failed to pay out what it said it would, a £1857 shortfall doesn't seem too bad somehow... :undecided
    Feb 2008, 20year lifetime tracker with "Sproggit and Sylvester"... 0.14% + base for 2 years, then 0.99% + base for life of mortgage...base was 5.5% in 2008...but not for long. Credit to my mortgage broker
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    There were years when annual statements had the pay-out projected to be around 23k, assuming medium growth rate.

    Standard Life projections were well known to underproject at stages. Indeed, for a period, their low projection actually gave lower figures than the guaranteed current value. They later adjusted it to match the current guaranteed value.

    i wonder how many people surrendered the policies based on the flawed projections.
    So even though it has failed to pay out what it said it would, a £1857 shortfall doesn't seem too bad somehow...
    Still a good return. The reason for shortfall isnt the return as such but the target rate being set too high (and the monthly premium too low).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
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    TrickyDicky101 wrote: »
    With the compensation received looks like a decent result to me.

    What? £330 profit over 20 years from a £14,400 investment is pants!
    "You were only supposed to blow the bl**dy doors off!!"
  • TrickyDicky101
    TrickyDicky101 Posts: 3,513 Forumite
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    maninthestreet wrote: »
    What? £330 profit over 20 years from a £14,400 investment is pants!

    The £14,400 wasn't invested for the entire 20 years.
  • angela110660
    angela110660 Posts: 929 Forumite
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    Oooh our 25 year Standard Life endowment matures tomorrow- waiting in anticipation!
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