Foresters is named one of the top 5 long-term with profits payouts

Friday, June 26, 2015

Once again, Foresters has come out well in The Association of Financial Mutuals’ With Profits Performance Review

Cost of living blog nesteggWe’re pleased to say that the Association of Financial Mutuals’ (AFM) With Profits Performance Review 2015 placed us in the top five payouts for long-term with profits investments.

The AFM’s analysis, based on data published by Money Management, showed an increase this year in the gap between investment payouts from mutual societies such as Foresters Friendly Society when compared with payouts from non-mutuals, or PLCs.

In fact, the average payout for a 25-year policy, investing £50 per month, was more than £7,000 higher from a mutual society than a non-mutual provider.

If you don’t understand how these types of investments work, we have a short, informative video about With Profits that explains it in a way that everyone can understand.

In a nutshell, Foresters’ with profits savings plans differ to many other investments in that they don’t offer a fixed interest rate, but instead offer the potential for growth by way of bonuses being added annually and at the end of the savings term.  Neither are they linked solely to the stock market – they sit in the middle, offering a lower risk savings option for those who want to save for the medium or longer term. 

We wouldn’t claim that with profits policies are for everyone – investors chasing high returns and willing to take a bit more risk with their savings wouldn’t find what they’re looking for here – but to us they represent a sensible way to save for the longer term.

Please note:   

  • This blog is intended to provide information, not financial advice, to help you make an informed decision about savings and investments. We do not offer financial advice.  You should contact a financial adviser, who may charge a fee, if you want financial advice. 
  • The value of an investment may fall as well as rise and depending on the product held, you may get back less than you have paid in.
  • The addition of bonuses is not guaranteed and depends on the performance of the fund and how we decide to distribute profits.
  • Past performance is not a guide to future performance

Source: Mutuals With-Profits Performance Review 2015, Association of Financial Mutuals’ 

The AFM’s analysis is based on data published by Money Management (April 2015) following their survey of the providers of 55 with-profits endowment policies.

 
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