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.
