Most IFAs will look to recommend waiver benefits after changes to pension rules come into force in A...
Most IFAs will look to recommend waiver benefits after changes to pension rules come into force in April 2001.
According to a study undertaken among Swiss Re's panel of IFAs, most were aware of the changes to defined contribution pension arrangements, whereby risk benefits must be set up separately from the pension scheme, but most will continue to recommend waiver benefits in spite of this change.
The research revealed that while 43% of the group were unaware that the scope for waiver benefits will extend to cover redundancy or unemployment as well as incapacity, 71% would look from April to recommend cover against these risks in the future.
Despite this, however, the group maintained they had concerns about redundancy cover in terms of benefit restrictions, expense and non-payment of claims. One member of the group said: "A lot of clients have had or know of someone who has had a claim turned down."
When asked how they would prefer to source the asset accumulation and risk benefit components of a pension, over half said they would prefer to source the elements separately, but a significant number said they were happy to stick with the waiver product offered by the pension provider.
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