SAMPLE REPORT - Selectapension › wp-content › uploads › ... · Retirement Income Strategies...

Retirement IncomeStrategieswith Income Modeller

Client Name: Rachel JonesClient Ref: RP000912 _Adviser Name: Fred BloggsReport Print Date: 03/09/2018

SAMPLE

REPORT

This report has been based on the following information. Please make it known if any part of thisinformation is incorrect as it may affect the results of the analysis.

Personal Information Ref RP000912Title MrsForename RachelMiddle InitialsSurname JonesGender FemaleDate of Birth 28/07/1960Employment Status EmployedMarital Status MarriedPartner's Date of Birth 14/04/1967Partner's Forename RupertPartner's Surname JonesPartner's Gender MaleHealth Status NormalDependents NoDependent NotesAttitude to Risk MediumLifetime Allowance Protection NoneCountry of Residence England, Northern Ireland, Wales or Other

Page 2

Client Name: Rachel Jones Adviser Name: Fred Bloggs Case Reference: 732498

SAMPLE

REPORT

Introduction

The purpose of this analysis is to provide projections on how your pension pots, investments and savingplans can be used to help fund your income requirements in retirement. This analysis does not, on its own,show whether or not moving your funds is advisable, as that also depends on many other factors, such asyour “attitude to risk” and your personal circumstances and objectives. It does, however, demonstrate 4 mainareas to help you understand your potential income options in retirement:

• How much tax you may be liable to pay if you took the pension fund as one cash lump sum• How long a desired income model will last• The sustainable amount of income you can take from your plans until the desired target age• Shortfall analysis, if applicable, to maintain a target income up until the desired target age

Your Options in Retirement

Uncrystallised Funds Pension Lump Sums (UFPLS)Single or multiple withdrawals can be made. Each withdrawal will consist of 25% tax free and the remaindertaxable at your marginal rate. Upon taking UFPLS, your pension contribution allowance will reduce to amaximum of £4,000 each year.

Flexi Access DrawdownTaking a flexible income, typically known as an ‘Income Drawdown Arrangement’, allows you to choose theamount you wish to take from your pension pot each year, the pot decreases with every withdrawal but themoney left invested could grow. Take your tax-free cash (usually 25%) and leave the remaining pot investedand withdraw as and when you need to. All future withdrawals will be subject to income tax where applicable.

AnnuityThere are different types of annuities to choose from depending on your needs, including the ability to addpartner benefits, this is called a Joint Life Annuity. A Joint Life Annuity will pay an income to your partner afteryou die. People who have a shorter life expectancy than others could be eligible for an Enhanced Annuity,this means they would be offered a potentially higher income than someone who is expected to live longer.

The main advantage of an Annuity is the amount of income received is guaranteed, however, an Annuity maynot be suitable for you if you want to leave something to your family or you have a very short life expectancy.

Page 3


SAMPLE

REPORT

What will your money buy you in the future?

Inflation is the rate at which the general level of prices for goods and services rises as well as an increase inthe cost of living. It effectively means the ‘buying power’ of money at the present time.

The prices of goods and services will rise, therefore the same amount of money today will actually buy youless in the future. The most common measures of inflation are Consumer Prices Index (CPI) and the RetailPrice Index (RPI). Each of these looks at hundreds of common items we spend our money on e.g milk, breadetc.

For example, if the inflation rate is 2.5%, £10,000 today will have the same buying power as £9,756 in ayears’ time and £7,811 in 10 years’ time. The reverse of this would be if you were purchasing a £30,000 cartoday, then theoretically, in a years’ time that same car would cost you £30,750.

For this reason, inflation will erode your fund unless it is able to grow at a higher rate than inflation.

In this report, future inflation is assumed to be 2.5%.

Life Expectancy – Office for National Statistics (ONS)

The ONS produces and publishes a wide range of information about the United Kingdom. Specifically, theyprovide us with life expectancies based on historical information. They calculate the average time in yearsthat an individual would be expected to survive based on their gender, birth year, current age and assumethey reside in Great Britain.

ONS publish two different calculations to work out the life expectancy of a particular data set, in this analysiswe use ‘Period Life Expectancy’.

State Pension

The State Pension is a regular payment from the Government and is based on your National Insurancerecord when you reach State Pension age.

We assume the full single-tier State Pension will be paid, the actual amount you get depends on yourNational Insurance record.

Income from the State Pension is assumed to increase by RPI.

Your State Pension Age: 67

Annual System Assumption State Pension in today’s terms: £8,546.20

Page 4


SAMPLE

REPORT

Proposed Analysis

The report has been based on the following information. Please make it known if any part of this informationis incorrect as it may affect the results of the analysis.

Calculation Date 24/07/2018Projection Basis Inflation AdjustedProjection Basis Headline RatesTarget Age 85 (Calculated using ONS Life Expectancy Tables)

Plans to be used in retirementCurrent total value of your existing pension planto be used in retirement

£250,000.00

This comparison takes into account the fact that you already have the following guaranteed income availableand this may reduce the income required from your drawdown arrangement.

The income amounts shown below have been adjusted for inflation

GuaranteedIncome

Name Amount Increase Rate Payable fromage

Payable to age

Annuity Current TaxableIncome

£12,300.00 0 57 Guaranteed forLife

Page 5


SAMPLE

REPORT

Estimate of Tax on Day One WithdrawalIf you’re thinking about taking the whole of your pension as cash, there are some important things you needto consider prior to making a decision. You need to understand how much tax you might have to pay. 25% ofthe cash you take will be tax free, but you may need to pay income tax on the remaining amount, this couldbe as much as 45%. We have illustrated the potential tax you will need to pay in the example below. Youshould also consider that the cash taken will need to provide you with an income in retirement.

This has been calculated assuming 25% is taken as a tax-free lump sum, Income Tax Rates and theStandard Personal Allowance for the 2018/19 tax year and includes your other guaranteed income ifapplicable.

Page 6


SAMPLE

REPORT

Retirement Income StrategyThe below retirement income strategy has been created to demonstrate the target income required from yourtotal fund. This strategy has been created using Income Drawdown and an Annuity to demonstrate how longyour target income will last. The Annuity quote from Legal & General is detailed below.

Target IncomeFrom Age Gross Income Net Income Indexation57 £13,500.00 £13,170.00 RPI

Page 7


SAMPLE

REPORT

Take a Flexible Income - Target vs Actual IncomeRetirement Income Strategy: Indexed Income Strategy - Medium Growth Rate - 5%The below graph demonstrates the sustainability of your target income of £13,500 increasing by RPI from 57onwards.

• Full Drawdown - past target age

The below graph demonstrates the impact on the fund value to the target age of 85 withdrawing the targetincome. The fund value will be exhausted at the following age:


Page 8


SAMPLE

REPORT

Retirement Income Strategy: Indexed Income Strategy - Medium Growth Rate - 5%

The below table demonstrates the sustainability of your target income of £13,500 increasing by RPI from 57onwards.


Target Income vs Actual Income

Age at Endof Year

Target Income Other Guaranteed Income Full Drawdown Income

Gross Net Gross Net Gross Net Fund at End ofYear

58 £13,170 £12,848 £11,707 £11,678 £62,466* £62,168 £181,888

59 £13,170 £12,792 £11,421 £11,393 £1,748 £1,399 £183,696

60 £13,170 £12,737 £11,143 £11,115 £2,027 £1,622 £185,254

61 £13,170 £12,683 £10,871 £10,844 £2,299 £1,839 £186,565

62 £13,170 £12,631 £10,606 £10,579 £2,564 £2,051 £187,630

63 £13,170 £12,580 £10,347 £10,321 £2,823 £2,258 £188,452

64 £13,170 £12,530 £10,095 £10,069 £3,075 £2,460 £189,031

65 £13,170 £12,481 £9,848 £9,824 £3,321 £2,657 £189,369

66 £13,170 £12,434 £9,608 £9,584 £3,561 £2,849 £189,468

67 £13,170 £12,388 £9,374 £9,350 £3,796 £3,037 £189,328

68 £13,170 £12,342 £9,145 £9,122 £4,024 £3,219 £188,952

69 £13,170 £12,298 £8,922 £8,900 £4,248 £3,398 £188,340

70 £13,170 £12,255 £8,705 £8,683 £4,465 £3,572 £187,493

71 £13,170 £12,213 £8,492 £8,471 £4,678 £3,742 £186,411

72 £13,170 £12,172 £8,285 £8,264 £4,885 £3,908 £185,096

73 £13,170 £12,133 £8,083 £8,063 £5,087 £4,069 £183,548

74 £13,170 £12,094 £7,886 £7,866 £5,284 £4,227 £181,767

75 £13,170 £12,056 £7,693 £7,674 £5,476 £4,381 £179,754

76 £13,170 £12,019 £7,506 £7,487 £5,664 £4,531 £177,509

77 £13,170 £11,982 £7,323 £7,304 £5,847 £4,677 £175,032

78 £13,170 £11,947 £7,144 £7,126 £6,026 £4,820 £172,323

79 £13,170 £11,913 £6,970 £6,952 £6,200 £4,960 £169,382

80 £13,170 £11,879 £6,800 £6,783 £6,370 £5,096 £166,209

81 £13,170 £11,846 £6,634 £6,617 £6,536 £5,228 £162,802

82 £13,170 £11,814 £6,472 £6,456 £6,698 £5,358 £159,163

83 £13,170 £11,783 £6,314 £6,299 £6,855 £5,484 £155,290

84 £13,170 £11,753 £6,160 £6,145 £7,009 £5,607 £151,183

*This includes a PCLS amount of £60,975

Page 9


SAMPLE

REPORT

Take a Flexible Income - Target vs Sustainable IncomeRetirement Income Strategy: Indexed Income Strategy - Medium Growth Rate - 5%The below graph demonstrates the maximum sustainable income from your fund until the target age 85.

• Total annual income - onwards.

The below graph demonstrates the impact on the fund value to the target age of 85 withdrawing themaximum sustainable income.

Page 10


SAMPLE

REPORT

Retirement Income Strategy: Indexed Income Strategy - Medium Growth Rate - 5%

The below table demonstrates the maximum sustainable income from your fund until the target age 85.

• Total annual income - onwards.

Target Income vs Sustainable Income

Age at Endof Year

Target Income Other Guaranteed Income Full Drawdown Income

Gross Net Gross Net Gross Net Fund at End ofYear

58 £13,170 £12,848 £11,707 £11,678 £66,652* £65,517 £177,600

59 £13,170 £12,792 £11,421 £11,393 £5,926 £4,741 £175,043

60 £13,170 £12,737 £11,143 £11,115 £6,205 £4,964 £172,151

61 £13,170 £12,683 £10,871 £10,844 £6,477 £5,181 £168,923

62 £13,170 £12,631 £10,606 £10,579 £6,742 £5,393 £165,359

63 £13,170 £12,580 £10,347 £10,321 £7,000 £5,600 £161,460

64 £13,170 £12,530 £10,095 £10,069 £7,253 £5,802 £157,226

65 £13,170 £12,481 £9,848 £9,824 £7,499 £5,999 £152,655

66 £13,170 £12,434 £9,608 £9,584 £7,739 £6,191 £147,748

67 £13,170 £12,388 £9,374 £9,350 £7,974 £6,379 £142,503

68 £13,170 £12,342 £9,145 £9,122 £8,202 £6,562 £136,921

69 £13,170 £12,298 £8,922 £8,900 £8,425 £6,740 £131,000

70 £13,170 £12,255 £8,705 £8,683 £8,643 £6,914 £124,738

71 £13,170 £12,213 £8,492 £8,471 £8,855 £7,084 £118,135

72 £13,170 £12,172 £8,285 £8,264 £9,062 £7,250 £111,189

73 £13,170 £12,133 £8,083 £8,063 £9,264 £7,411 £103,899

74 £13,170 £12,094 £7,886 £7,866 £9,462 £7,569 £96,263

75 £13,170 £12,056 £7,693 £7,674 £9,654 £7,723 £88,278

76 £13,170 £12,019 £7,506 £7,487 £9,842 £7,873 £79,943

77 £13,170 £11,982 £7,323 £7,304 £10,025 £8,020 £71,256

78 £13,170 £11,947 £7,144 £7,126 £10,203 £8,163 £62,205

79 £13,170 £11,913 £6,970 £6,952 £10,378 £8,302 £52,777

80 £13,170 £11,879 £6,800 £6,783 £10,548 £8,438 £42,992

81 £13,170 £11,846 £6,634 £6,617 £10,713 £8,571 £32,849

82 £13,170 £11,814 £6,472 £6,456 £10,875 £8,700 £22,235

83 £13,170 £11,783 £6,314 £6,299 £11,033 £8,826 £11,299

84 £13,170 £11,753 £6,160 £6,145 £11,187 £8,950 £38

*This includes a PCLS amount of £60,975

Page 11


SAMPLE

REPORT

Take a Guaranteed Income for LifeThese results have been generated using the total value of your pension arrangements.

Annuity Summary Annuity Provider Legal & General Annual Annuity £4,520.04 Escalation RPI Guaranteed Period 0 Years Type Single Dependents Percentage 0% Payable Monthly Paid In Advance

Page 12


SAMPLE

REPORT

Strategy: Indexed Income Strategy - Medium Growth Rate - 5%

Age at Endof Year

Target Income Other Guaranteed Income Annuity Income

Gross Net Gross Net Gross Net58 £13,170 £12,848 £11,707 £11,678 £65,385 £64,503

59 £13,170 £12,792 £11,421 £11,393 £4,409 £3,527

60 £13,170 £12,737 £11,143 £11,115 £4,409 £3,527

61 £13,170 £12,683 £10,871 £10,844 £4,409 £3,527

62 £13,170 £12,631 £10,606 £10,579 £4,409 £3,527

63 £13,170 £12,580 £10,347 £10,321 £4,409 £3,527

64 £13,170 £12,530 £10,095 £10,069 £4,409 £3,527

65 £13,170 £12,481 £9,848 £9,824 £4,409 £3,527

66 £13,170 £12,434 £9,608 £9,584 £4,409 £3,527

67 £13,170 £12,388 £9,374 £9,350 £4,409 £3,527

68 £13,170 £12,342 £9,145 £9,122 £4,409 £3,527

69 £13,170 £12,298 £8,922 £8,900 £4,409 £3,527

70 £13,170 £12,255 £8,705 £8,683 £4,409 £3,527

71 £13,170 £12,213 £8,492 £8,471 £4,409 £3,527

72 £13,170 £12,172 £8,285 £8,264 £4,409 £3,527

73 £13,170 £12,133 £8,083 £8,063 £4,409 £3,527

74 £13,170 £12,094 £7,886 £7,866 £4,409 £3,527

75 £13,170 £12,056 £7,693 £7,674 £4,409 £3,527

76 £13,170 £12,019 £7,506 £7,487 £4,409 £3,527

77 £13,170 £11,982 £7,323 £7,304 £4,409 £3,527

78 £13,170 £11,947 £7,144 £7,126 £4,409 £3,527

79 £13,170 £11,913 £6,970 £6,952 £4,409 £3,527

80 £13,170 £11,879 £6,800 £6,783 £4,409 £3,527

81 £13,170 £11,846 £6,634 £6,617 £4,409 £3,527

82 £13,170 £11,814 £6,472 £6,456 £4,409 £3,527

83 £13,170 £11,783 £6,314 £6,299 £4,409 £3,527

84 £13,170 £11,753 £6,160 £6,145 £4,409 £3,527

Page 13


SAMPLE

REPORT

Shortfall AnalysisRetirement Income Strategy: Indexed Income Strategy - Medium Growth Rate - 5%As demonstrated in the sustainable income calculation, your current arrangements are unable to match thetarget income of your retirement strategy. The Shortfall Analysis demonstrates what would need to becontributed in order to match your target income at retirement. This calculation assumes all of your assetsare used in order to provide income and that your guaranteed income supports your requirements.Contributions made are assumed to be invested in your selected plan, Royal London Pension Portfolio.

Take a Guaranteed Income for life

The total value of your existing pension at retirement is £250,000.00, and could purchase an annuity of£4,520.04 per annum and provide a lump sum of £60,975.61

In order to match your target income of £13,170.73 and provide a lump sum of £60,975.61, a fund of£728,463.22 would be required for you to purchase a single life, RPI indexed annuity.

To achieve your income goal, a one-off lump sum payment of £478,463 could be contributed immediately tocover the shortfall.

Page 14


SAMPLE

REPORT

Critical Yield Analysis

Strategy: Indexed Income Strategy

Age 70 75 80Projected Annuity £6,078.95 £6,877.77 £7,781.57Critical Yield Type A Required to Purchase Equal Annuity -0.31% 0.17% 0.5%Critical Yield Type B Required to Purchase Equal Annuity -0.93% -0.12% 0.6%

This analysis estimates the growth that would be required (critical yield) in the pension fund to enable anannuity to be purchased at the stated ages. Critical Yield Type A assumes that drawdown is taken in line withthat which would have been received from an annuity if purchased now. Critical Yield Type B assumes thatdrawdown is taken in line with the target income.

If drawdown was to be taken in line with annuity purchase the fund would last 62 years and 0 months.

Critical Yield Notes & AssumptionsThis illustration is a guide only and does not replace the type A / B critical yield illustration issued by the planprovider.

This illustration is based on the charges applicable to the Royal London Pension Portfolio Drawdown planspecified, however the cost of the Annuity to be purchased at the age(s) shown is based on standardassumptions as laid down by the Financial Conduct Authority, the estimated growth required may not mirrorthat projected by Royal London Pension Portfolio.

The analysis takes into account the current charging structure of the Royal London Pension Portfolio whichmay be subject to change.

The annuity that can be purchased will depend upon the actual growth in your selected plan.

The actual transfer value received may be higher or lower than that shown due to investment fluctuationsbetween the calculation date of this analysis and completion of a transfer.

The figures illustrated for the plan considered assume that investment will be with the provider’s standarddefault fund and charges unless otherwise specified.

The level of drawdown is assumed to increase at the same rate as the annuity in order to create theappropriate critical yield; however it may not in practice be possible to achieve this.

Page 15


SAMPLE

REPORT

Proposed Pension PlanStandard Charges

Royal London Pension PortfolioAnnual Charge 0.45% paLarge Fund Discount; £0-£32,800 0.9%, £32,800-£65,600 0.5%, £65,600-£197,000 0.45%, £197,000-£656,000 0.4%, £656,000+ 0.35%Income Release Charge £199

The value of these standard plan charges may vary depending on the size of the fund or investment, and arebased on an assumed investment fund and the level of remuneration (if any) which will normally be taken. Ifother funds or level of remuneration are selected the results of the analysis would be different.

Funds have been selected for the various sectors based on lowest annual charge then value of funds undermanagement.

Fund Name Split % Initial % Ongoing % *Mixed Investment 0%-35% Shares (100%)RLP Sustainable Managed Growth Trust pen 100 0 1Default Fund 0 1Adjustment to charges 0 0

* This is the total charge inclusive of annual management charges, additional expenses and negotiateddiscounts where applicable.

Plan FeaturesThis report has been produced assuming the following product features are available :-

UFPLSUncrystallised Fund Pension Lump Sum (UFPLS) can be taken as a single or as multiple lump sums fromdefined contribution plans.

Page 16


SAMPLE

REPORT

Investment Performance ReportRoyal London Pension PortfolioStandardised Performance: 1 year to the end of July

Fund Name 2014 2015 2016 2017 2018RLP Sustainable Managed Growth Trustpen

Performance Data not available

Past 12 Months Growth Performance Information

Fund Name Aug'17

Sep'17

Oct'17

Nov'17

Dec'17

Jan'18

Feb'18

Mar'18

Apr'18

May'18

Jun'18

Jul'18

RLP SustainableManaged Growth Trustpen

Performance Data not available

Please note that past performance cannot be a guide to the future and investment returns cannot beguaranteed.

Information produced by Selectapension Ltd in conjunction with data supplied by Morningstar and otherexternal sources.

Page 17


SAMPLE

REPORT

Report as of 3 Sep 2018

Morningstar® Category Index Fund Benchmark Morningstar Rating™ Morningstar® Category IMA Sector

-

- - -

Investment Objective

-

10.0K

10.0

10.1

10.1

10.1

10.1

10.2Growth Of 10000

(GBP)

Fund

Index

Category

2013 2014 2015 2016 2017 08/18 Performance

- - - - - - Fund- - - - - - +/- Index- - - - - - +/- Category- - - - - - Percentile Rank

Standardised Performance1 Yr to 1 Yr to 1 Yr to 1 Yr to 1 Yr to

30 Jun 14 30 Jun 15 30 Jun 16 30 Jun 17 30 Jun 18- - - - -

12 Months Total Return (bid to bid). Source: Morningstar, net incomereinvested. This table complies with the FCA's regulations to comparedifferent products from different providers.

Trailing Returns

(31 Aug 2018)

Return % +/-Idx +/-Cat

3 Months6 Months1 Year3 Years Annualised5 Years Annualised

-----

-----

-----

Quarterly Returns 1st qtr 2nd qtr 3rd qtr 4th qtr

Portfolio -

Risk Profile

Asset Allocation % Port. Morningstar Style Box™

Equity Style Fixed Income Style

StyleValue Blend Growth

Small

Mid

LargeSize

Interest Rate SensitivityLtd Mod Ext

LowM

edHighCredit Q

uality

Risk Measures

3-Yr Alpha -3-Yr Beta -R-Squared -Information Ratio -Tracking Error -

3-Yr Sharpe Ratio -3-Yr Std Dev -3-Yr Risk -5-Yr Risk -10-Yr Risk -

Top 10 Holdings Sector % Port. Sector Weightings % Equity

h Cyclical 0.00

r Basic Materials -t Consumer Cyclical -y Financial Services -u Real Estate - j Sensitive 0.00

i Communication Services -o Energy -p Industrials -a Technology - k Defensive 0.00

s Consumer Defensive -d Healthcare -f Utilities -

No Data Available

Operations

Fund CompanyPhone -Website -Inception Date -Fund Manager -Manager Start DateTotal Net Assets (mil) -

DomicileCurrencyInc/Acc -ISIN GB00BFFK8F09IMA Sector -In-house ISA scheme No

Minimum Initial Purchase -Minimum Additional Purchase -

© 2018 Morningstar. All Rights Reserved. The information, data, analyses and opinions (“Information”) contained herein: (1) include the proprietary information of Morningstar and Morningstar’s third party licensors; (2)may not be copied or redistributed except as specifically authorised;(3) do not constitute investment advice;(4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and(6) may be drawn from fund data published on various dates. Morningstar is not responsible for any trading decisions, damages or other losses related to the Information or its use. Please verify all of the Information beforeusing it and don’t make any investment decision except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go downas well as up.

ß®

SAMPLE

REPORT

Results SummaryRetirement Income Strategy: Indexed Income StrategyAs at age 85 based on a 5% growth rate

Provider Plan Pension FundValue

Total DrawdownIncome

Total OtherGuaranteedIncome

Alliance TrustSavings

Select SIPP £157,000 £183,000 £233,000

Transact Personal Pension £154,000 £183,000 £233,000Aegon One Retirement £153,000 £183,000 £233,000Royal London Pension Portfolio £151,000 £183,000 £233,000FundsNetwork Pension £148,000 £183,000 £233,000Wealthtime SIPP £147,000 £183,000 £233,000Ascentric Pension Account £146,000 £183,000 £233,000Old Mutual Wealth Collective

Retirement Account(Self Select) -Unbundled

£144,000 £183,000 £233,000

Elevate, part ofStandard Life

Elevate PensionInvestment Account

£143,000 £183,000 £233,000

LV= Flexible TransitionsAccount

£139,000 £183,000 £233,000

AJ Bell Investcentre SIPP (investing inFunds and SharesService)

£137,000 £183,000 £233,000

Standard Life Active Money SIPP[0.8-2% AMCFunds]

£137,000 £183,000 £233,000

Standard Life Active Money SIPP[Mutual Funds]

£134,000 £183,000 £233,000

Scottish Widows Retirement Account £122,000 £183,000 £233,000Prudential Flexible Retirement

Plan£115,000 £183,000 £233,000

Novia Novia Wrap £83,900 £183,000 £233,000

Page 19


SAMPLE

REPORT

Results Excluding Adviser Remuneration At Age 85Retirement Income Strategy: Indexed Income StrategyAs at age 85 based on a 5% growth rate, assuming no Adviser remuneration has beentaken.

Provider Plan Pension FundValue

Total DrawdownIncome

Total OtherGuaranteedIncome


Select SIPP £170,000 £183,000 £233,000

Transact Personal Pension £167,000 £183,000 £233,000Aegon One Retirement £167,000 £183,000 £233,000Royal London Pension Portfolio £165,000 £183,000 £233,000FundsNetwork Pension £161,000 £183,000 £233,000Wealthtime SIPP £159,000 £183,000 £233,000Ascentric Pension Account £159,000 £183,000 £233,000Old Mutual Wealth Collective

Retirement Account(Self Select) -Unbundled

£157,000 £183,000 £233,000



£155,000 £183,000 £233,000


£152,000 £183,000 £233,000


£151,000 £183,000 £233,000

Standard Life Active Money SIPP[0.8-2% AMCFunds]

£150,000 £183,000 £233,000


£146,000 £183,000 £233,000

Scottish Widows Retirement Account £134,000 £183,000 £233,000Prudential Flexible Retirement

Plan£127,000 £183,000 £233,000

Novia Novia Wrap £93,100 £183,000 £233,000

Page 20


SAMPLE

REPORT

Adviser RemunerationAdviser Remuneration (as input)

Initial OngoingSingle Premium/Transfer 3% 0%Single Premium/Transfer Monetary £0 £0

Strategy: Indexed Income Strategy - Remuneration at proposed age 85

Provider Plan Fund (5%) Initial(Single)

Fund-Based Total


Select SIPP £157,000 £7,500 £0 £7,500

Transact Personal Pension £154,000 £7,500 £0 £7,500Aegon One Retirement £153,000 £7,500 £0 £7,500Royal London Pension Portfolio £151,000 £7,500 £0 £7,500FundsNetwork Pension £148,000 £7,500 £0 £7,500Wealthtime SIPP £147,000 £7,500 £0 £7,500Ascentric Pension Account £146,000 £7,500 £0 £7,500Old Mutual Wealth Collective Retirement

Account (Self Select) -Unbundled

£144,000 £7,500 £0 £7,500



£143,000 £7,500 £0 £7,500


£139,000 £7,500 £0 £7,500


£137,000 £7,500 £0 £7,500

Standard Life Active Money SIPP[0.8-2% AMC Funds]

£137,000 £7,500 £0 £7,500


£134,000 £7,500 £0 £7,500

Scottish Widows Retirement Account £122,000 £7,500 £0 £7,500Prudential Flexible Retirement

Plan£115,000 £7,500 £0 £7,500

Novia Novia Wrap £83,900 £7,500 £0 £7,500

Page 21


SAMPLE

REPORT

Notes & AssumptionsThe projected fund values in this report take account of the standard charge structure applicable to each ofthe plans shown unless otherwise stated. They are based on an assumed investment fund. If other funds orremuneration are selected, the results of the analysis may be different.

The figures are only examples and are not guaranteed, they are not the maximum or minimum amounts.What you get back depends on the performance of your fund and the tax treatment of the investments.

All insurance companies base their illustrations on growth rates to a maximum laid down by the regulatorsbut their charges vary.

Inflation may affect what you can buy in the future with the amount shown.

Assumptions used in this analysis

1. Annuity Interest Rate 1.50% p.a.

An annuity rate is needed to calculate the critical yield analysis.

The Annuity Interest Rate is the assumed interest rate on which the annuity rates are based. If a higher ratehad been assumed then the required investment return (Critical Yield) would have been lower andconversely if a lower rate applied then the required investment return (Critical Yield) would have been higher.

2. Retail Price Index 2.50% p.a.

3. Average Weekly Earnings 4.00% p.a.

4. Gilt Index Yield 1.75% p.a.

5. Life Expectancy ONS National Life Tables, Great Britain (2014 – 2016)

These tables are updated annually. For the purpose of this (and any other analysis) the ages shown havebeen rounded to age next birthday.

6. Death Benefits

If a full annuity is purchased, the death benefit will be dependent on the type of the annuity. For example ifthe annuity has a 50% spouses pension and a 5 year guarantee, on death the spouse will be entitled to a fullpension for 5 years and 50% of the value of the pension thereafter.

For any element of the contract which is in a drawdown arrangement, the assumed death benefit would bethe return of any residual fund.

Page 22


SAMPLE

REPORT

Taxation AssumptionsIncome Tax and National Insurance contributions

You will still have to pay Income Tax after you’ve retired. This applies to all your pension income, includingthe State Pension. Some income is paid without any tax being taken off, but if tax is due this will often becollected by taking money off any company pension payments or when you take money out of a workplace orpersonal pension.

Income Tax and Personal allowances

The Personal allowance can vary from year to year depending on any changes to legislation. Current rulesdictate that you can earn up to £11,850 completely tax free, this is called your Personal Allowance. If youearn or receive less than this then you’re a non-taxpayer.

Within this report for any plans that state an income is received, we will assume a tax rate as income underPAYE then the following tax rates and income tax allowance bands will be applied to the gross income.

Below is the current legislation regarding Income Tax, this is based on the 2015-16 tax year. Where known,this analysis also takes into account any future tax band changes.

Band Start of Band End of Band Tax RatePersonal Allowance £0 £11,850 0%Basic Rate £11,851 £46,350 20%High Rate £46,351 £150,000 40%Additional Rate £150,001 45%* Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zeroif your income is £123,000 or above.

We will take into account the total gross income received from the State Pension, future guaranteed incomeand any pension income to determine the amount of tax which is to be paid. This information will be used tocalculate the ‘Net Income’ received after tax.

How your pension is taxed

Since April 2015 when Pension Freedoms came into effect, you have been able to take as much money outof your pension as you want once you are over age 55. You can usually withdraw up to 25% of your pensionpot tax free, the remainder can be used to provide an income or can also be withdrawn as a lump sum; inboth cases this is taxable. This means any money you receive over your Personal Allowance will be taxed inline with the above rates.

Page 23


SAMPLE

REPORT

Tax Free Income

Income from any tax-free source will not be used to calculate your net income. Therefore, the grosswithdrawal before tax from these plans will always be the same as the net withdrawal after tax. (e.g Interestyou receive from tax-efficient savings accounts, such as cash ISAs, is paid tax free whether or not you’re ataxpayer).

Taxation of Withdrawals from Investments

Following a withdrawal from an investment plan the projected value of the plan will be used to calculate theinitial cost of the units being sold to make the withdrawal. This will in turn be used to calculate the gain madeon the sale of the investments.

Any gain following a withdrawal from an investment plan will be taxed depending on the plan type.

Other Taxation Assumptions

• Age allowances for Income Tax are not taken into account

• You are a resident of and domiciled in either England, Northern Ireland, Wales or Other

• All plans are owned on a single life basis by you

• All calculations assume you have no other income sources than those listed

Emergency Tax Codes on Pension Income

Please note that in some circumstances an emergency tax code may be applied to pension income. Thiscould potentially lead to more tax being paid at outset than is due. In this case you would have to claim thisadditional tax back.

National Insurance contributions

If you continue working beyond the State Pension age, you no longer pay National Insurance contributionson your earnings.

If you normally declare savings income through a self-assessment tax return you should continue to do this.You can still claim back tax you might have paid on your savings in previous years when you should not havedone.

Page 24


SAMPLE

REPORT

Record of Data InputClient DetailsRef RP000912Title MrsForename RachelMiddle InitialsSurname JonesGender FemaleDate of Birth 28/07/1960Employment Status EmployedMarital Status MarriedPartner's Date of Birth 14/04/1967Partner's Forename RupertPartner's Surname JonesPartner's Gender MaleHealth Status NormalDependents NoDependent NotesAttitude to Risk MediumLifetime Allowance Protection NoneCountry of Residence England, Northern Ireland, Wales or OtherNotes

Calculation Date 24/07/2018Projection Basis Inflation AdjustedProjection Basis Headline RatesTarget Age 85 (Calculated using ONS Life Expectancy Tables)

Plans to be used in retirementCurrent total value of your existing pension plan to beused in retirement

£250,000.00

GuaranteedIncome

Name Amount Increase Rate Payable fromage

Payable to age

Annuity Current TaxableIncome

£12,300.00 0 57 Guaranteed forLife

Page 25


SAMPLE

REPORT

Retirement Income StrategiesIndexed Income StrategyTarget IncomeFrom Age Gross Income Net Income Indexation57 £13,500.00 £13,500.00 RPI

Include Guarantee Yes

Annuity SummaryAnnuity Provider Legal & GeneralAnnual Annuity £4,520.04Escalation RPIGuaranteed Period 0 YearsType SingleDependents Percentage 0%Payable MonthlyPaid In Advance

Page 26


SAMPLE

REPORT

Date post:	03-Jul-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

SAMPLE REPORT - Selectapension › wp-content › uploads › ... · Retirement Income Strategies...

Documents