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&#39Don&#39t waive goodbye to benefits&#39

Scottish Equitable believes the introduction of stakehol^_der in April

2001 has brought sales opportunities for IFAs.

In his latest Ritchie Paper, pensions development manager Stewart Ritchie

highlights a number of inadequacies in the forthcoming pen^_sion reg^_ime

which could make it bene^_ficial to buy current products.

He says that, after April 2001, it will not be possible to effect waiver

as part of a personal or stakeholder pension and the availability of life

cover will be more restricted.

This will create an opportunity to lock into the existing reg^_ime by

taking out a pension with life cover and waiver before the cut-off date.

Ritchie also highlights how IFAs should exploit the existing carry-forward

rules to allow their clients to maximise their pension before the facility

is abolished next April.

He says: “The existing carry-forward provision can be a real benefit to

those who have def^_erred using their full allowance in past years. To take

advantage of existing rules, IFAs should ensure that clients are advised

before April next year.”

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