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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


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.”


Payouts cut again by R&SA

Royal & Sun Alliance policyholders have been dealt ano-ther blowwith payouts on long-term savings plans slashed again, this time byaround 10 per cent.The changes, effective from May 1, are the second change this year.In January, R&SA made a 5 per cent cut which followed 15 per centreductions which were made last year.Now a 25-year endowment […]

Treasury back in control

The Treasury is to take more control of retail financial servicespolicy after a reorganisation of Government departmentalresponsibility following the departure of senior civil servant PaulaDiggle from the Inland Revenue.Since Diggle&#39s secondment to the Revenue in 2001, responsibility forpolicy making in the industry has been divided, with Diggle retainingan active role.Now that she has left, industry […]

A consumer&#39s view

The recent landmark decision by the FSA on differential pay rises hasimportant implications for all employers and their pension advisers.The FSA has recently taken the brave step of awarding lower pay risesto staff who are members of its final-salary pension scheme in anattempt to head off total closure of the scheme.Within the FSA, only 900 […]

Schroders to run Legg Mason mid and small cap fund

Schroders has won the mandate to run the £23m Legg MasonInvestors Enterprise investment trust which it will rename theSchroder UK mid-cap and small cap fund.The fund will be run by the co-heads of Schroders&#39 pan-European smalland mid-cap team, Andy Brough and Rosemary Banyard. The pairco-manage the £270m Schroder UK smaller companies fund, withBrough also managing […]


Guide: what you need to consider for your auto-enrolment project

In this guide, Johnson Fleming reveals what items you need to understand to gauge the impact of auto-enrolment on your business. The guide focuses on: the impact that your auto-enrolment scheme will have on you; assessing your workforce; understanding your staging date; reviewing your current provision; and modelling contribution levels and costs.


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