How are you discounting Stakeholder pensions..


I am interested to know how other Paraplanners are discounting Stakeholder pensions for DC pension switches, and for setting up new pensions.

For example, a couple with an IHT problem, don't intend on touching pensions, but wish to be tax efficient as one is a non tax payer...pension contribution is a no brainer.

A stakeholder is cheaper now, however over the long term offers no intergenerational planning opportunities for the wider IHT objective.

At the risk of falling short of FCA guidelines,can we discount the SHP on this basis?

Or must we recommend the SHP, and deal with other issues in future when they arise?



  • If a key reason for the client is to make use of passing pension (as a pension) down the generations then this automatically provides a reason for excluding SHP (and probably most workplace schemes too).

    Your file needs to show you considered SHP and also needs to show why discounted and that the reason for discounting is 'real' not 'fanciful'. In the circumstances you describe I would say this is 'real'.

    You can't recommend a SHP and 'deal with the other issues in the [email protected] unless your client is prepared to tell you (& commit to) the date of their death. :)

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