Endowment providers cut bonuses

Three leading endowment providers have cut their final payouts by as much as ten per cent in the last six months, according to new research.

Fairinvestment.co.uk claims Norwich Union, Friends Provident and Standard life have all cut their profit bonuses.

According to the financial news provider, Friends Provident was the first to drop its endowment payouts.

In July, the lender cut more than £3,000 off the final sum handed over, based on a 25-year, £50 per month endowment policy held by a 29-year-old male.

Standard Life followed suit in August with an eight per cent cut and Norwich Union slashed its final payouts by seven per cent on September 1st.

Fairinvestment.co.uk''s chartered financial planner, Sharon Bratley said falling rates "could potentially lead to an endowment shortfall to cover their mortgage" and "is just more bad news".

However, according to Dolly Pickeringm, of Heather, Moor & Edgecomb, it is unfair Independent Financial Advisers are being punished for over-estimating the returns on endowment policies, the Financial Times reports.

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