Endowment payouts plunge below £23k

IFAonline | 06 Apr 2011 | 08:30
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Sterling

Payouts on 25-year endowment policies have dropped below £23,000 for the first time, with the return for saving £50 a month so low savers would have done better in cash.

The figures were in data given to the FSA by Phoenix Group, which runs down old with-profits funds at minimum cost, the Daily Mail reports.

At their height, endowments paid out over £100,000 on a similar level of savings.

But this year National Provident Life, owned by Phoenix, will pay £22,918 - an annual return of just 3.2 %. The average savings account would have given 3.4 % over the same period.

Other results from Phoenix Group include £23,195 from a similar policy with Crusader and £24,451 from Life Association of Scotland.

Savers who originally took out a policy with Scottish Mutual or Scottish Provident have done better at £32,348 and £32,985. Royal Life managed £33,642 and Britannic £33,077.

These returns are better than those produced by Standard Life (£28,900) and Scottish Widows (£27,184) whose funds are still open.

Other funds run by Phoenix include Phoenix and London (£25,533), Britannia Life (£25,401) and London Life (£29,071).

 

Categories: Investment

Topics: endowments

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