Standard Life has cut maturity payouts on its with-profits pension and endowment policies for the second time this year following a mid-year review.

From yesterday, the payout on a Standard Life 20-year with-profits pension for a male retiring at age 65 is €86,408, based on a contribution of €125 a month, down from a maturity value of €93,453 for policies that matured earlier in the year.

This represents a drop of 7.5 per cent on top of cuts of 23 per cent implemented last February.

The maturity value of a 25-year with-profits endowment policy taken out by a male aged 30 on his next birthday fell by 7.6 per cent from €81,942 before yesterday to €75,728, based on a contribution of €60 a month. Such a policyholder would have received over €100,000 if their policy had matured before February 1st.

Standard Life said the value of most policies had increased on the surrender or transfer values that existed for their policies a year ago. However, the maturity values of some long-term endowment policies were lower than last year's surrender value because of the phased removal of mutuality bonuses from payouts.

The company, which votes on its mutual status next year, said annualised returns on longer-term endowment policies compared favourably against with-profits short-term policies.

The bonus rates for conventional and unitised with-profits policies remain unchanged. With-profits are investments where the returns are smoothed out over the term of the policy.

Returns on the policies, known as bonus rates, have been on a downward spiral over the past few years.