Worrying research published by the Consumers' Association reveals two-thirds of consumers with an en...
Worrying research published by the Consumers' Association reveals two-thirds of consumers with an endowment shortfall have done nothing to reduce its impact.
An online study of 4,850 endowment holders - just as the third round of projection letters are being sent out - suggests the average shortfall is so far around £8,680 but that figure increases to £11,408 among the top ten endowment providers as the CA table shows:
|Company||Average shortfall on an endowment policy|
|Axa Sun Life||£12,540|
|Legal & General||£10,990|
Equally worrying is the fact that 11% of those consumers with shortfalls are responding by increasing payments into their endowments , argues the CA.
Sheila McKechnie, director at the Consumers' Association, says the biggest concern of the watchdog now is that while they want people to top-up their savings and fill any gaps in the shortfall, their research has revealed one in ten people are coping with the problem by increasing payments into their endowments.
Research has been published in the main to boost the CA's public campaign about endowments and get more people to complain about the advice they may have received.
"It is very disconcerting to see that 70% of the endowment policyholders with shortfalls we surveyed have not yet complained. Consumers who received red reprojection letters in spring 2000 may only have a few days left. If [consumers] delay [they] could lose [their] right to complain," says McKechnie.
Statistics behind endowment shortfalls were gathered on the CA's www.endowmentaction.co.uk website between September 2002 and January 2003.
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