The Endowment Diary

The Endowment Diary

Text

The Endowment Mis-selling Debacle - one of the UK's worst financial scandals

Monday, January 10, 2005

Bonuses Cut

Bonuses Cut

More bad news for the hapless holders of underperforming, and useless, endowment policies.

Axa Equity & Law has announced that it will be halving the annual bonus payments on its with-profits policies from a pathetic 2%, to a derisory 1%.

That is less than inflation, and certainly less than you would get for leaving your money in a savings account.

Legal & General (L&G) has cut interim bonuses on some of its with-profits bonds from 3.5% to 2.75%.

Prudential is maintaining its annual bonus payouts on its Prudence Bond, at 3.25%.

The Actuarial Profession are reported to have said that, despite rising equity markets, bonus payouts "are continuing to fall and are set to do so for a number of years yet".

No comments:

Post a Comment