Still with profits, but a little less

EQUITABLE LIFE has delivered further bad news on prospects for returns from with-profit pension and endowment policies.

Having trimmed bonus rates earlier this year, it is now cutting back elsewhere. Policies maturing now will have the value of their funds reduced slightly.

Policies maturing now will have received bonuses earlier this year. But in the period between the addition of the bonus and the day the policy is cashed in Equitable continues to add to its value. This return is being cut for the second time in 12 months because of poor yields from shares and fixed interest investments.

The value of a fund built up through a 10-year regular premium pension plan will come down by 0.5 per cent.