Scottish Equitable and Guardian disappoint with-profits policyholders
Scottish Equitable and Guardian are reducing their with-profits maturity values this year. Both funds are closed to new investors and managed by Aegon UK, part of a global life insurance and pension group.
In the case of Guardian, the payout on a £50-a-month 25-year with-profits endowment plan will be £51,903, which is 9% down on the £57,152 produced by a similar plan maturing in 2007.
For Scottish Equitable endowment holders the decline is smaller, at 1.4%. The payout on a £50-a-month 25-year with-profits endowment plan will be £51,040 in 2008, compared with £51,755 in 2007.
Similar investments held with other insurers are affected; this year’s worst paying with-profits endowments are with Friends Provident at £36,425 and Standard Life at £38,970.
Those saving for retirement with Guardian will also see payouts drop from last year.
A male retiring at 65 having saved £200-a-month in a 20-year policy will receive £91,578, or 9.5% less than the £101,192 paid on a similar policy in 2007. At Scottish Equitable, the reduction in payout is less, at 2.3%.
Category: Companies News, Insurance News
Visited 3046 times, 1 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.