View more on these topics

L&G cuts with-profits bonuses

Legal & General has slashed with-profits bonuses in line with other insurers, it has announced today.

The firm blames large falls in the stockmarket over 2008 – its with-profits fund plummeted 18 per cent before tax – and difficult conditions continuing into 2009.

Mortgage endowment annual bonuses have remained at 1.25 per cent while final bonuses have been cut by 19 per cent on policies written in 1984 and 1989. Examples of other cuts in bonuses have yet to be provided by the firm.

Transfer values for pension plans with a 20 year term have fallen by around £6,000 – from £88,214 at the start of March 2008 to £82,785 this year, for a 65 year old male contributing £200 a month.

Meanwhile, transfer values for 25 year term mortgage endowments have dropped around £3,000 – from £39,613 last year to £36,414 in 2009, for a male aged 29 at entry paying £50 per month.

With-profits finance director Carl Dowthwaite says: “With-profits continues to provide attractive long term returns and has given customers genuine protection from market volatility. In current market conditions the core features of with-profits mean that it remains a good choice for investors. Our investment strategy puts us in a strong position to benefit from market recovery.”

Recommended

Campaign victory

Well, we got there. Some months ago, I talked in this column of how a generic industry marketing or advertising campaign might be got off the ground.

NPI repeats pension data blunder

NPI has continued to provide an adviser with incorrect information about a client’s with-profits pension policy despite apologising for previous mistakes.

Big in Japan

We turned bullish on Japanese equities in the second half of 2008 and we remain so today.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com