The above graph illustrates the actual performance of endowment policies maturing from 1973 to 2004 taking in most of the with profit underwriters in return for a £50 per month contribution.

How then does the FSA justify forecasting a return of under £25000 on existing policies maturing during the next 20 years?

How can the FSA justify the misery and discontent that they are creating by forcing life assurance companies to send out demeaning letters?

N.B. The graph value at, say 1991, is the maturity value of an endowment ‘With Profits’ taken out in 1966. The value at 2004 is for a policy started in 1979.

	AVERAGE WITH PROFITS: 8% TO 14% PA COMPOUND (per premium paid)
	AVERAGE MANAGED FUND: 3% TO 11% PA COMPOUND (per premium paid)
	AVERAGE PEP/ISA UNITISED: 1% TO 10% PA COMPOUND (per premium paid)