Standard Life: should you take the money and run?
With-profits bonds: Should you take the money and run - at Moneyweek.co.uk - the best of the week's international financial media.
Standard Life's plans to demutualise mean that millions of its policyholders could pocket windfalls of up to £2,000, says Lucy Warwick-Ching in the FT. Yet it may not make sense to hang on to (and keep paying in to) your with-profits bond, endowment policy or pension plan so as to receive that payout in three years. Some experts believe that bonuses will continue to fall and that, following flotation, the insurer is likely to align maturity values on its policies with those of its peers, which would mean a drop of around 10%. So you may be better off crystallising your gains now. But before you do, check the exit penalties that Standard Life levies; on with-profits pensions policies, you will have to pay 18%, whereas on with-profits bonds the charges vary from 0% to 27%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published