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%.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

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
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
What is the 25x retirement rule and does it work?
The 25x retirement rule has been around for decades but many experts question if it is a suitable strategy
-
When is the self-assessment tax return deadline?
If you are self-employed, rent out a property or earn income from savings or investments, you may need to complete a self-assessment tax return. We run through the deadlines you need to know about