Endowments due to mature?

Retirement planning with endowment proceeds

If you hold an endowment for the repayment of a mortgage or to contribute to retirement, it is important that it is reviewed before maturity.

As part of a pension and retirement review, all wealth which can be used to meet retirement targets is accounted for. An endowment can meet an important need at-retirement, do you know what yours will be worth?

Endowments were very popular plans in the 80s and 90s and were often positioned as a key tool in planning repayment of an interest-only mortgage. 

While endowments were often invested in ‘with profits’ funds, leading to concerns over miss-selling, funds were typically shielded from investment risk, and the policy had accompanying life or critical illness protection.

How does an endowment mature?

Endowments hold a target or maturity date. This is when funds will be available for release without penalty, and free of UK taxation. Be wary that upon maturity, any life cover element will also cease. If you have a linked debt such as a mortgage, it will be due to use for repayment.

A professional adviser can assist you across a number of important areas in relation to endowment policy reviews, including:

  • A review over the investment element of the endowment plan. This includes how and where the funds are invested, an analysis of investment performance v target performance, risk level and trading costs.
  • A check for any nominated death beneficiaries on the plan, and the option to add a nominated person to receive any funds upon death
  • A check for protection and insurance levels. This includes a check on the person/s insured and whether additional benefits apply, like critical illness cover (CIC) or premium protection.
  • Policy administration and management costs
  • Cost of underlying insurance
  • Insurance adjustment options
  • Contribution history and requirements
  • Maturity date and early encashment options
  • Projected value at maturity
  • Further advisory services in relation to the use of endowment proceeds

Pension News

basic spotlight stakeholder pension
UK Pension Planning

What is a stakeholder pension?

Stakeholder pensions: simple, low-cost… basic? A stakeholder pension plan is a basic, low cost pension arrangement. It is a form of defined contribution plan, and

Read More »
Retirement Planning

Pensions & Divorce

Pension Planning & Divorce: Separating Pension Assets It’s important to understand how pensions work across life’s major twists and turns. Without emotion, let’s discuss pensions

Read More »
Retirement Planning

Calculate your retirement age!

Introducing our new retirement age calculator Use our free pension retirement age calculator to find out when you can afford to stop work! Our calculator

Read More »

Speak to a Professional

We introduce clients to regulated, professional and qualified advisers across the UK and internationally.

Our panel of adviser firms must undertake a comprehensive due diligence process. We only refer to firms with locally-appropriate regulation and insurance.

Ask us anything

didn't find what you are looking for?

search Our Site

About This Site

Whilst every care has been taken in the preparation of our website and publications, they are intended as a guide only. Readers are advised to seek professional regulated financial and tax advice before making any changes to their planning or investments. Our publications, including website and guides do not offer investment or pension advice and nothing in them should be construed as investment or financial advice. Our publications, including guides and website are not, and should not be seen as, a recommendation to use any particular investment or planning strategy.

You must carry out your own research before making any investment decision or change to your planning. The information published has been obtained from sources that we believe to be accurate. Although reasonable care has been taken, we cannot guarantee the accuracy or completeness of any information published. Articles and opinions published may be wrong and may change at any time. You must always carry out your own independent research and verify information and data you collect before making any financial decisions or planning changes.

Financial and pension planning is complex, and must be tailored to the individual client’s needs, objectives and circumstances. Teach Learn Resources Ltd do are not regulated by the Financial Conduct Authority and do not offer financial or tax advice. Our only business is to act as a professional introducer to regulated IFA firms worldwide. Contact us for more details about our panel of approved adviser firms and the regulation held in your jurisdiction.

Please see our Privacy & Terms for more information about the company, protection of your data and terms of use.

All content on this website and associated publications have been written by us and is the intellectual property of Teach Learn Resources Ltd. We take plagiarism seriously; our lawyers are watching.

Reviewmypensions.com is a trading style of Teach Learn Resources Limited. Teach Learn Resources Limited is registered in England and Wales company number 13349666. Registered Office 591 London Road, Cheam, Sutton, England SM3 9AG.

All rights Reserved