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Projections give a distorted picture on endowments

With a well-established practice trading over 20-plus years, we have seen our fair share of endowments projecting a shortfall while we are also seeing many mature and produce far more than predicted.

Only last week, a long-standing client died from a heart attack and one can only wonder if the worry of a hypothetical shortfall on his endowment was a contributing factor.

Having received a death statement from the endowment provider today, the life cover element of the plan was not used as the plan had already accrued sufficient bonus to pay out the required sum. Where was the shortfall that was projected only six months ago?Can the Government please leave alone subjects of which it has no experience or understanding, as it is misleading clients who are encashing their endowments early because of the way in which projections are now being calculated.

How can a Government with a deficit as big as its own on the civil service pension scheme give financial advice to an industry that was fine until it starting meddling?Craig WhiteCleeve Financial Solutions,Bishops Cleeve,Cheltenham

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