You bet it's good news by Finance News Bulletin

Published: 27/02/07

information Companies & markets Investing Power portfolio Campaigns Mortgages & homesMortgage featuresInsurance Consumer recommendation Broadband & phones Retirement Saving & banking Credit & loans little business Tax & wills Message boards cash blog Tools & calculators Ask an expert Guides Compare & pay money forThere is good news at last for homeowners who have bet their mortgage on the stock marketplace

Prudential says those using its with-profits endowments will have enough to cover their mortgages when their policies come to the end of their term this yearA QUICK MONEY alteration If you only have one minute to learn how to sort your finances, forget the relax and read this>> Our 8-step planThe £85b with-profits finance achieved a 124% return last year and the insurer is paying out £46,695 on a standard 25-year endowment in use by a 29-year-old saving £50 a month

This is slightly down on the £46,892 on a similar policy maturing last year, but not as catastrophic as many rivalsThere's also high-quality news for those saving for retirement, with payouts actually increasing over last day Savings of £200 a month over 20 years to era 65 in a with-profits pension plan shaped £133,301, up from £127,680 last yearSavers who bought into the Prudential with-profits tie ten years ago have seen their £10,000 grow to £17,772

Over the history year the bond value, which invests in a combination of shares, fixed interest and possessions, has risen by 109% from £16,031, providing a much better return than cash in banks and structure societiesPrudential is a strong with-profits company and has over 50% of the finance invested in shares Some offices have less than 20% in shares, with the bulk of their funds in fixed interest, which drags on lasting performance

Most policy-holders with Scottish friendly, the insurer taken over by the Pru ten years ago, will also get together their target this year, where the payout is £47,650 But a alternative of savers, 790 out of the 21,300 policies due to mature this year, will see shortfalls averaging £390Homebuyers with once top performing Scottish Widows are not so lucky Even though 51% of the fund is invested in shares, it grew by now 10% return last year

As a result, the finance, owned by Lloyds TSB, will pay just £38,578 on a 25day, £50 a month endowment, 3% down on last day's £39,829The fall in Scottish Widows is much more in row with expectations for most with-profits money and the figures could be even lower next yearA account from number crunchers at trade body Actuarial line of work says it expects payouts on 25-year policies to carry on lessening year on year - by around 3% a year - for the next 15 existence The prediction assumes funds will grow by an average 6computer a year after tax

Scottish Widows trailed in well below universal Accident's £46,829 endowment shape but ahead of Standard Life's £36,950Some 89,330 out of Scottish Widows' 111,000 mortgage donation policies are on condition red, which means their policies will fail to wrap their home loans when they mature At Pru 30,150 of its 201,000 policy-holders, and a further 46,500 savers with Scottish friendly, find themselves in the same positionThe outlook is also bleak for pension savers at Scottish Widows, which produced now £97,231 for someone saving £200 a month for 20 existence to age 65

This is £2,469 more than a alike policy maturing last day© 2007 Associated Northcliffe Digital Ltd conditions Privacy policy Advertise with us LoansCardsMortgagesInsuranceCompare the best deals around with This is Money

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