Thursday, February 03, 2005

Standard Life Cuts Bonus

Standard Life Cuts Bonus

In more bad news for holders of failing endowment policies, Standard Life has yet again cut bonuses; for good measure it also warned that lower payouts will continue, irrespective of the recovery in equity markets.

Standard Life has around 2.6m with profits endowment policy holders.

The cuts are the 6th in 3 years; you will recall that Standard Life "welched" on its mortgage endowment promise a few months ago, I assume its 2.6m policy holders must be feeling pretty sick by now.

The effect of this latest round of cuts can be seen in this example:

A £50 per month mortgage endowment over 25 years was worth £55K, until the latest cut; now it is worth just £49K.

I wonder of the directors of Standard Life have had their bonuses cut for good measure?

No comments:

Post a Comment