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&#39IFAs can use Teps to help close widening savings gap&#39

IFAs have a major role to play in closing the growing savings gap as

public confidence in investment plummets, says Policy Portfolio.

Its research reveals the number of people with any kind of

savings-based products has dropped to 19 per cent in December 2002

from 29 per cent in December 1998. But the number of people who agree

it is important to make adequate provision for their retirement is

increasing.

The number of people whole-life insurance policies is down to 18 per

cent in December 2002 from 30 per cent in December 1998.

Policy Portfolio says that the results open the door for IFAs to fill

the investment gap with traded endowment policies.

It says investment products are not being bought because of low

consumer confidence, an element that can be overcome with Teps

minimum guaranteed element. It says IFAs can choose a Tep for their

client where the locked-in value is more than the purchase price so

the capital is guaranteed.

Managing director Brian Goldstein says: “With a big reduction in the

number of savings, investments and insurance policies, people have a

growing understanding of the need to provide for their retirement, it

is clear that Britons are in need for a vehicle to invest in for

retirement – putting IFAs in a great position.”

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