Endowment payments plummet at Standard Life

03 February 2005 / by None
Standard Life mortgages endowment policyholders have seen their final payouts fall by up to 18 per cent over the last year.

New figures show that 25-year, £50-a-month policies that matured this week were worth £49,511.

This represents a 10 per cent drop on the value of the endowment last July.

But Clive Scott-Hopkins, director of financial adviser Towry Law Financial Services, told the Times that last year the same policy would have paid out £66,070.

"Yesterday's maturity value is an 18.4 per cent reduction on a year ago," he said. "Standard Life is losing its competitive edge against its peer group."

Mr Scott-Hopkins also highlighted Standard Life's equity sell-off in February, which occurred just as the stock market started to recover.

Final payouts on similar 25-year endowment policies at Norwich Union fell by 9.9 per cent during 2004 and by 10.5 per cent at Scottish Widows.

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