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 Scott...
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