An endowment policy is a savings scheme paid as a lump sum.

The endowment policy was replaced by the retirement savings scheme in 2013, and you can no longer pay contributions to an endowment policy. However, you can keep your existing endowment policy and have it paid when you reach your retirement age. 

Advantages of an endowment policy

• You can have a large amount paid as a lump sum.
• You pay a 40 percent fee instead of income tax on the payment.
• The payment is not set off against the additional state pension.
• With P+ Life cycle you can choose your desired risk tolerance level.
• Your savings are creditor protected until payment starts.
• Your savings always go to your surviving relatives if you die - unless you have chosen otherwise.

Restrictions on an endowment policy

• You can no longer pay contributions to an endowment policy.
  
  

Are you approaching retirement?

If you are approaching your retirement age and have started planning your retirement, you can read more about what you should consider and pay attention to here