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Technical Guidance Ltd. Do Private Pensions have a future?
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Technical Guidance Ltd.
Do Private Pensions have a future?
Technical Guidance Ltd.
Do Private Pensions have a future?
Technical Guidance Ltd.
Pension Market Fundamentals
Technical Guidance Ltd.
The need for good retirement planning advice
Technical Guidance Ltd.
State Provision
Retirement Health
Technical Guidance Ltd.
State Provision
Retirement HealthRetirement Health
Private Provision
Technical Guidance Ltd.
Private Pension Coverage ...two worlds
Public Sector Private Sector
Technical Guidance Ltd.
The traditional private pensions market
Retirement
Accumulation
Technical Guidance Ltd.
Now there are two ‘pension’ markets
Retirement
Accumulation
RetirementBenefit options
Drawdown
Technical Guidance Ltd.
Drawdown market
Longevity risk
Health?Provision for Dependants?
Declining risk appetite Tax?
Need for regular income
Technical Guidance Ltd.
Drawdown market
Sovereign annuities
PropertyARFs
AMRF
Deposits
PRSAs
RACsHealth insurance?
Life assurance? State Pensions
Power of attorney?
Technical Guidance Ltd.
“Pension savers have been urged to
consider alternatives to buying an
annuity with their retirement funds,
after new figures showed annuity
rates have suffered a huge fall.”
Charlie Weston, Irish Independent15th September 2011
Technical Guidance Ltd.
ARF imputed distribution
3% pa distribution 5% pa distribution
Bonds
Equities
Technical Guidance Ltd.
Longevity risk & investment return
Spreading €300k out over different periods of time
Technical Guidance Ltd.
Current estimate of ARF market
What is the best estimate of the current size of the ARF market?
A €3bnB €4bnC €5bnD €6bn
Technical Guidance Ltd.
Drawdown market is growing
There are 536,000 people aged 65 + today.
How many people will be aged 65+ population in 10 years time?
A 600,000B 675,000C 725,000D 775,000
Technical Guidance Ltd.
Legislation and tax complexity
Reduction in pension tax reliefs
Fund Thresholds
Taxation of lump sums
Pension Adjustment Orders
Pension levy
Investment markets uncertainties
Will the Euro survive?
Technical Guidance Ltd.
The Fundamentals of the private pensions market
Reduced State provisionReduced State provision
Low private pension provisionLow private pension provision
Growing drawdown marketGrowing drawdown market
Increasing complexityIncreasing complexity
Technical Guidance Ltd.
Short term issues
Technical Guidance Ltd.
Pension tax reliefs
The tax relief!
The need for private pension provision
Technical Guidance Ltd.
Incentives we still have ...
Marginal rate relief on personal contributions
Backdating of personal contributions Employer contribution BIK exemption Gross roll up Tax free lump sum
Technical Guidance Ltd.
The drawdown market ... lightly impacted
5% ARF imputed distribution No pensions levy
Technical Guidance Ltd.
Getting paid for advice?
Technical Guidance Ltd.
Demonstrating to clients the value of your advice
Technical Guidance Ltd.
The Fundamentals of the private pensions market
Reduced State provisionReduced State provision
Low private pension provisionLow private pension provision
Growing drawdown marketGrowing drawdown market
Increasing complexityIncreasing complexity
Technical Guidance Ltd.
Do Private Pensions have a future?
