Endowment ripoff revealed?
A recent article in Timesonline claims that savers with endowments pensions and bonds may have been ripped off to the tune of £8 billion this year.
With the latest announcements of payouts their analysis indicates while underlying funds have risen by six percent, payouts from an “average” with profits policy have fallen by 3 percent. The ripoff claim is further supported by a Money Management magazine survey which found that of 45 endowment providers, 11 have returned less than cash.
The article has supporting comments from the Financial Services Consumer Panel Paul Flynn (MP) and IFA‘s. It also identifies the worst offenders.
The discontent of endowment holders has been going on for years now. Perhaps the growing number of voices calling for action will result in change, although for many this will be too late. It will be interesting to hear the response, if any, to the claim that this ripoff can only continue because the insurers decide how much of any gain they pass onto customers.
January 9th, 2010 at 1:56 pm
i have just had my annual endowment statement from aviva on a 3000 pound endowment which comes to an end next in feb 2010 next year i have paid more into the endowment then i will get back 150 pound to be exact. if i had deposited the same money in the worse saving account i could find and payed life insurance. i would have had money over on the 3000 pound where are the 19 years profit gone and should we be taking these people to court for negligence. or may i suggest start naming and shamming these companies and black list them