Friends Provident has warned it’s with profits policyholders that the value of it’s final bonuses will be cut by up to 50%. The warning follows the news that Friends Provident £13billion with profits fund lost more than 7% during the first half of this year.
The company says it will maintain it’s regular bonuses but final bonuses will be hit.
Friends Provident puts the blame on lower investment returns resulting from the credit crunch and economic crisis.
An illustration of how the cut might effect a Male policyholder paying £50 per month into a 25 year conventional life policy, shows that the final payout would now be £32,885 down from £36,425 six months ago.
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