Standard Life's with-profits funds have recovered some of their value following a major downgrade in October 2008 it was announced today.
In its latest review of bonuses, most plans will have increased in value, but will still remain considerably lower than a year ago due to extreme market conditions.
Despite today's small increase in bonuses, some plans are nursing significant losses over the past twelve months, with some with-profits bonds making a loss of almost 14% since January 2008.
Mortgage endowments have made a loss of between 4.5% and 4.8% in 2008, while savings endowments are down by as much as 4.7%.
Pension plans have made minor gains, with 20-year plans up 1.2% and 10-year plans adding 2.5% over the last year.
"Payout values for the majority of plans affected by this declaration will have recovered some of the ground lost at our last bonus review, in October 2008," says Standard Life's with-profits communications manager, Margaret Flaherty.
"Over the last 12 months the impact on plan values will not be as severe as the drop in the FTSE All Share Index because of the broad mix of assets in the with-profits fund, and the impact of any smoothing and guarantees that apply."
She says the overall reduction in plan values seen in the past twelve months are in the best interests of policyholders and ensure all customers are treated fairly.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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