SSIA fixed rate investors could see high gains

SSIA investors who selected fixed rate products are the most likely to see high gains when the accounts mature in 2007.

But, according to a report from independent actuarial consultancy Life Strategies, equity product holders will not fare as badly as feared.

"From an investment perspective, the good news is that the overall picture is positive in terms of product performance," said Dermot Corry, director at Life Strategies.

"Despite falls of 20% in typical investment funds since April 2002, equity SSIA investors are still well ahead of the contributions they have paid themselves, because of the boost of the Government contribution."

"Based on a typical product, our analysis suggests that the average SSIA has a current market value which is 9.5% lower than the total contributions paid, including the Government contribution. This is still 14% ahead of the contributions that the individuals have paid themselves. This is because of the benefit of investing a small amount each month rather than investing the full amount in April 2002," he said.

The report says that investors who opted for fixed rate deposit SSIA accounts will likely see their investment outperform both variable rate deposit and equity SSIA accounts.