Holders of Standard Life endowment policies have been dealt a fresh blow with news that the insurer is to cut its with-profits payouts by up to 18%.

This is the 6th consecutive year that payouts have been cut, and in real terms the return on a 25 year mortgage endowment of £50 a month has fallen from over £100k in 2000 to just £40k today.

Holders of 25 year endowment policies maturing this month will see average returns of 25% less than those which matured a year ago.

Standard Life, which is expected to float on the stock market later this year, said it expected the bad news to continue with further cuts next year.

Follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.