RETIREMENT PLANNING USER GUIDE

Transcription

1 RETIREMENT PLANNING USER GUIDE 1. Retirement Planning User Guide Selectapension

2 CONTENTS 1. NEW OR EXISTING CLIENT... 4 NEW CLIENT EXISTING CLIENT... 7 SELECTING AN EXISTING CASE... 8 CREATE NEW ANALYSIS CREATING A NEW ANALYSIS... 9 ANALYSIS TYPE ASSUMPTIONS... 9 ASSUMPTIONS FOR SHORTFALL AND PROPOSED CONTRIBUTIONS ASSUMPTIONS FOR INCOME AND DEFINED CONTRIBUTION PLANS ASSUPMTIONS FOR INCOME AND DEFINED BENEFIT SCHEMES ASSUMPTIONS FOR INCOME & GROWTH FOR NON-PENSION INVESTMENTS INCOME & TARGET TARGET INCOME PLANS & INVESTMENTS ENTERING EXISTING PLANS & INVESTMENTS ADD A NEW PLAN ADDING A DEFINED CONTRIBUTION PENSION OVERRIDE ASSUMPTIONS ADDING A DEFINED BENEFIT PENSION OVERRIDE ASSUMPTIONS FOR DB PENSION ADDING BENEFITS ON A DB PENSION ADDING A STATE PENSION ADDING A CRYSTALLISED BENEFIT (ANNUITY) ADDING A CRYSTALLISED BENEFIT (DRAWDOWN) ADDING AN INVESTMENT ADDING PROPERTY AS AN INVESTMENT ADDING A PROPOSED CONTRIBUTION ADDING AN ADDITIONAL PENSION CONTRIBUTION ADDITIONAL SAVINGS CONTRIBUTION ESTIMATE BENEFITS Retirement Planning User Guide Selectapension

3 ESTIMATE OF BENEFITS INCLUDING SHORTFALL ANALYSIS RESULTS PRINT OPTIONS Retirement Planning User Guide Selectapension

4 1. NEW OR EXISTING CLIENT Welcome Upon initially logging into Selectapension, a user will arrive at our Welcome page. This page offers three options; create a New Client, access an Existing Client and Fund Research. This screen also provides details of which tools are available to the individual subscription. Selecting a New Client will enable the creation of a file containing a client s basic details. These details will be stored on the system and can be accessed when using any of the Selectapension tools. The Existing Client option will bring up a library of stored clients. The client details can be viewed by clicking on the client name. From this point a user can choose to View Stored Analyses or Create New Analysis for a client. Selecting Fund Research will launch our fund filtering search tool. To learn more about how to use this tool, please see the Funds Functionality User guide. The current stage of workflow is denoted by the underlined title. Navigation through the workflow is controlled by Next and Back buttons. Input will be sense checked to ensure validity of the data before the process will continue. For example, if one of the mandatory fields is left blank, (mandatory fields are shown in yellow), the user will be unable to move to the next stage until that field has been completed. 4. Retirement Planning User Guide Selectapension

5 NEW CLIENT The first step to creating an analysis is creating a customer file by inputting the client data as explained below. Yellow boxes are mandatory and must be completed before moving forward. Ref Title Forename Middle Initials Surname Insert your reference if desired Select an option from the dropdown list. Please note that the system will validate the choice of title against the choice of Sex Enter the client s forename Enter the client s middle initials if applicable Enter the client s surname 5. Retirement Planning User Guide Selectapension

6 Sex Date of Birth Employment status Marital status Partner s D.O.B. Partner s name Any Dependents Attitude to Risk Lifetime Limit Protection Health status Notes Select the sex of the client from the dropdown list Enter the client s date of birth in dd/mm/yyyy format. This can either be entered manually or selected from the calendar Select from the dropdown list Select from the dropdown list Enter partner s date of birth if relevant in dd/mm/yyyy format. This can either be entered manually or selected from the calendar Enter the partner s name if applicable Select Yes or No If Yes is selected, additional notes can be added to include details of dependents Select the client s attitude to risk from the dropdown list Select from the dropdown list and enter the Lifetime Limit applicable Select from the dropdown list Any additional notes may be added and will be detailed within the report 6. Retirement Planning User Guide Selectapension

7 EXISTING CLIENT Select the existing client that you wish to work with by clicking the client s name. For large client libraries the user can search for a client using the search function or by clicking on a column header to sort by column. Once the client details have been recalled the user can then complete a multitude of tasks. Delete Client removes all the information created for that particular client. Update Client Details enables editing of client information at any time. View Stored Analyses allows access to previous cases carried out for this particular client. Create New Analysis allows the user to create a new analysis type for a client. 7. Retirement Planning User Guide Selectapension

8 SELECTING AN EXISTING CASE Click on the case to view or edit previously entered information. Alternatively, click on Create New Analysis to start a brand new case. CREATE NEW ANALYSIS Click on Create New Analysis to select an analysis suite. Select Pensions to access Retirement Planning. 8. Retirement Planning User Guide Selectapension

9 2. CREATING A NEW ANALYSIS ANALYSIS TYPE Calculation Date Estimate Benefits at Age Include Shortfall Analysis Lifetime Limit Analysis Include Show Benefits in This is pre populated with today s date. However, this can be over typed with the appropriate date selected from the calendar Enter the age at which the estimate of benefits are to be shown Selecting Yes will include the shortfall between the achieved income and the target income in the final analysis Select Yes to show the Lifetime limit in the analysis The analysis can be run in either, Today s Terms (counted back by inflation)or in Monetary Terms (before inflation has been deducted) 3. ASSUMPTIONS If required, the general assumptions of how benefits will be calculated can be altered in this area. These assumptions will apply for all plans entered unless otherwise set against individual plan on the Plans & Investments page. Once a plan has been entered, changing the assumptions here will not affect the plan. 9. Retirement Planning User Guide Selectapension

10 ASSUMPTIONS FOR SHORTFALL AND PROPOSED CONTRIBUTIONS Assumed Annual Growth Plan Charges Additional Initial Fees Deducted from plan Shortfall Options Income PCLS 100% of PCLS to be reinvested Amount of PCLS not to be reinvested PCLS taken to be used for EST. Growth on PCLS to be invested for income The Assumed Annual Growth will default to 5% but can overtyped The annual plan charge will default to 1% but can be overtyped Additional initial fees to be deducted can be entered Monthly and single contributions for shortfall will show in the results if selected Yes in this area. Indexation can also be applied Details of how income is to be taken can be assumed here Select Yes or No if PCLS is to be taken If PCLS is to be taken, select Yes or No as to whether 100% of it is to be reinvested If No was selected for the assumption above then the amount of PCLS not to be reinvested can be entered here either in percentage or in monetary form A description can be detailed here If Yes has been selected for the above assumption, the estimated growth and income to be taken can be assumed here 10. Retirement Planning User Guide Selectapension

11 ASSUMPTIONS FOR INCOME AND DEFINED CONTRIBUTION PLANS Annuity or Drawdown PCLS 100% of PCLS to be reinvested Amount of PCLS not to be reinvested PCLS taken to be used for Est. Growth on PCLS to be invested for income Select whether income will be taken by purchasing an annuity or by going into drawdown Select Yes or No if PCLS is to be taken If PCLS is to be taken, select Yes or No as to whether 100% of it is to be reinvested If No was selected for the assumption above then the amount of PCLS not to be reinvested can be entered here either in percentage or in monetary form A description can be detailed here If Yes has been selected for the above assumption, the estimated growth and income to be taken can be assumed here 11. Retirement Planning User Guide Selectapension

12 ASSUPMTIONS FOR INCOME AND DEFINED BENEFIT SCHEMES PCLS 100% of PCLS to be reinvested Amount of PCLS not to be reinvested PCLS taken to be used for Est. growth on PCLS to be invested for income Cash Sum (not by commutation) Select Yes or No to take PCLS by commutation If PCLS is to be taken, select Yes or No as to whether 100% of it is to be reinvested If No was selected for the assumption above then the amount of PCLS not to be reinvested can be entered here either in percentage or in monetary form A description can be detailed here If Yes has been selected for the above assumption, the estimated growth and income to be taken can be assumed here If a cash sum is to be taken, not by commutation, the assumptions can be entered here 12. Retirement Planning User Guide Selectapension

13 ASSUMPTIONS FOR INCOME & GROWTH FOR NON-PENSION INVESTMENTS Income Type Annual Investment Growth Partner s Pension Select either Capital Withdrawal or Annuity If Capital Withdrawal is selected, the investment growth per annum and the income amount to be taken can be applied If Annuity is selected, further assumptions can be made percentage of the pension, the indexation and the guaranteed years 4. INCOME & TARGET TARGET INCOME Current Gross Income Future target income basis Input gross income amount excluding investments Select a target income basis. This can be entered either as a percentage of the current income or as a monetary amount 13. Retirement Planning User Guide Selectapension

14 5. PLANS & INVESTMENTS ENTERING EXISTING PLANS & INVESTMENTS Current plans and investments can be entered in this section. To add a new plan or investment, click on the Add button. ADD A NEW PLAN Click on the plan type to add the desired plan. 14. Retirement Planning User Guide Selectapension

15 ADDING A DEFINED CONTRIBUTION PENSION Plan Name Pension Type Scheme NRA Assumed annual growth Assumed annual charge Fund Value Valuation date Enter the name of pension provider Use the dropdown list to select the pension type Enter the retirement age for the scheme. An alternative age can be entered if desired Enter the assumed mid growth of the plan Annual fees can be entered as a percentage and/or a monetary charge Enter the value of the fund Enter the date at which the fund was valued. The date can also be selected from the calendar 15. Retirement Planning User Guide Selectapension

16 Add a contribution: To add a contribution, click on the Add Contribution button. The type of arrangement can be selected i.e. whether it s a personal or an employer contribution and if it is a fixed amount or a percentage of earnings A gross monetary amount may be added and the frequency at which it is to be taken. An increase rate to the contribution can also be applied. If the premiums continue to an age which differs to the age set in the plan, this age can also be entered. 16. Retirement Planning User Guide Selectapension

17 OVERRIDE ASSUMPTIONS Against each plan type are a set of assumptions. These assumptions can be viewed and overridden for each individual plan by clicking on the Override Assumptions button. Annuity or Drawdown Annuity Option Drawdown Option Assume Flexible Drawdown Criteria is Met Drawdown Income Choose whether income is to be taken via an annuity purchase or drawdown If Annuity is selected, further assumptions can be made relating to Partner s Pension, Indexation and Guarantees Select income via Drawdown and the further assumptions can be made: Select Yes or No If Yes has been selected for flexible drawdown, a percentage of the fund or an amount per annum can be set at this stage. If No has been selected an assumption on the percentage of Max GAD can be set PCLS to be Taken 100% of PCLS to be reinvested Est. Growth on PCLS to be invested for income Select Yes or No if PCLS is to be taken If PCLS is to be taken, select Yes or No as to whether 100% of it is to be reinvested If Yes has been selected for the above assumption, the estimated growth and income to be taken can be assumed here 17. Retirement Planning User Guide Selectapension

18 Amount of PCLS not to be reinvested If No has been selected for the assumption above then the amount of PCLS not to be reinvested can be entered here either in percentage or monetary form PCLS taken to be used for A description can be detailed here ADDING A DEFINED BENEFIT PENSION Scheme Name Scheme NRA Member Status DC AVC in Addition to Scheme Date of Leaving Enter the pension scheme name Enter the retirement age of this plan. If benefits are to be taken at a different age to that of the NRA, this age can also be entered Select Deferred or Active depending on whether the client is still in employment with this company Select Yes or No Enter the date of leaving the scheme 18. Retirement Planning User Guide Selectapension

19 OVERRIDE ASSUMPTIONS FOR DB PENSION To override the assumptions set against the plan, click on the Override Assumptions button. PCLS by commutation to be taken 100% of PCLS to be reinvested Est. Growth on PCLS to be invested for Income Select Yes or No If PCLS is to be taken, select Yes or No as to whether 100% of it is to be reinvested If Yes has been selected for the above assumption, the estimated growth and income to be taken can be assumed here Amount of PCLS not to be reinvested PCLS taken to be used for If No was selected for the assumption above then the amount of PCLS not to be reinvested can be entered here either in percentage or monetary form A description can be detailed here 19. Retirement Planning User Guide Selectapension

20 Total Cash Sum to be Invested for Income Amount of PCLS not to be reinvested Est. Growth on PCLS to be invested for Income Amount of PCLS not to be reinvested PCLS to be taken to be used for Est. Growth on PCLS to be Invested for Income Select Yes or No If Yes has been selected for the above assumption, the estimated growth and income to be taken can be assumed here If Yes has been selected for the above assumption, the estimated growth and income to be taken can be assumed here If No was selected for the assumption above then the amount of PCLS not to be reinvested can be entered here either in percentage or monetary form A description can be detailed here Enter growth on any PCLS to be invested for income. The percentage of income can also be estimated 20. Retirement Planning User Guide Selectapension

21 ADDING BENEFITS ON A DB PENSION Add the benefits as they appear in the transfer illustration from the scheme - these can be quoted at the date of leaving, calculation or retirement date. Select Add Benefit and Save after each one. There are fields, with dropdown lists where appropriate, for adding the revaluation & increases in payment (both with minimums & maximums), any guarantee period (Gtee) & death after retirement (%DAR). To delete a benefit, click on the icon: For GMP, the fixed rate basis is assumed and the appropriate rate according to the date of leaving will be shown by default. If this does not apply, select from the dropdown list as appropriate. If the scheme has a cash or lump sum payable at retirement (not if death occurs) in addition to the pension (i.e. not by commutation), add a Cash Sum from the dropdown Type list. You have the choice of inputting this either as a monetary amount or a multiple of pension. If the scheme offers a bridging pension, this can also be added. You are able to specify whether this is in addition to the other pension benefits Yes to supplementary or is included No to Supplementary. You can also select the period that this additional pension will be paid. 21. Retirement Planning User Guide Selectapension

22 ADDING A STATE PENSION From the dropdown list select the Pension Type. Basic State Pension: Select Use DWP Forecast if a forecast from the DWP is available. Alternatively, select Estimate Benefits. An amount will be calculated in the results depending on the age of the client. Basic Pension & S2P: Selecting this option from the dropdown list enables the entry of details for a second state pension. ADDING A CRYSTALLISED BENEFIT (ANNUITY) Provider Annuity Annual Increase in payment Enter the name of annuity provider Enter the amount of annuity being received per annum If there is an increase in payment choose from the dropdown list. The month of increase can also be selected 22. Retirement Planning User Guide Selectapension

23 ADDING A CRYSTALLISED BENEFIT (DRAWDOWN) Plan Name Assumed Annual Charge Assumed Annual Growth (before charges) Fund Value Valuation date Current Drawdown Frequency Current Drawdown Max GAD Ongoing Income Start of last review period: Enter the pension provider name Enter the assumed annual charge as a percentage and/or a monetary amount Enter the growth before charges have been applied Enter the fund Value as at the valuation date Enter the date at which the fund has been valued. This can be selected from the calendar Enter the current annual amount of income being taken Enter the frequency at which this annual income is being taken can be selected from the dropdown list Select Yes, No or N/A if flexible drawdown applies If No or N/A is selected above, an ongoing income can be determined. This can be expressed as either a percentage of Max GAD or monetary amount If Yes or No has been selected for Max GAD, a date for the last review period can be entered 23. Retirement Planning User Guide Selectapension

24 ADDING AN INVESTMENT Plan Name Investment Type Provider Age at which benefits are to be taken Value Valuation Date Amount of fund not to be reinvested for income Date required Amount not for income to be used for Anticipated Growth: Anticipated growth thereafter: Enter the name of the investment plan The type of investment can be selected from the dropdown list Enter the investment provider name Enter the age at which benefits are to be taken Enter the valuation of the plan on the selected date Date at which the investment was valued can be selected from the calendar Enter a value either as a percentage of the total fund or as a monetary amount that is not to be reinvested Enter a date or an age for when the funds for reinvestment are required. The date can be selected from the calendar Details can be added as to what the fund will used for if required Enter growth anticipated and a date until that growth is expected from the dropdown list Enter the anticipated growth after the date above 24. Retirement Planning User Guide Selectapension

25 Add a Contribution: To add a contribution, click on the Add Contribution button. A gross monetary amount may be added and the frequency at which it is to be taken. An increase rate to the contribution can also be applied. If the premiums continue to an age which differs to the age set in the plan, this age can also be entered. ADDING PROPERTY AS AN INVESTMENT Plan Name Investment Type Current Residence Retirement Income Via Assumed Annual Increase in value Current Value Estimated Outstanding Mortgage at age 66 Enter the name of the investment plan Select Property from the dropdown list Select Yes or No Select either, Sale, Rental, Equity Release or None from the dropdown list If Sale is selected from the dropdown list, the Assumed Annual Increase in Value can be estimated Enter the current value of the property Enter the outstanding mortgage at the given retirement age; i.e. the age to which the analysis is being run 25. Retirement Planning User Guide Selectapension

26 Amount of Equity not to be invested for Income Amount not for Income to be used for Percentage of Property Value to be released Current Rental Potential Enter the amount not to be invested for income either as a percentage or as a monetary figure A description can be detailed here If Equity Release is selected from the Retirement Income Via dropdown list, the percentage of equity to released can be entered If Rental is selected from the Retirement Income Via dropdown list, the annual rental potential and an increase rate can be entered ADDING A PROPOSED CONTRIBUTION When adding a Proposed Contribution, select Pension or Savings. ADDING AN ADDITIONAL PENSION CONTRIBUTION Gross Single Contribution Gross Regular Contribution Frequency Add amount of additional pension as a gross figure. The system will calculate the net figure Enter any regular contributions as a gross amount. The system will calculate the net figure The frequency of the regular contributions can be selected from the dropdown list 26. Retirement Planning User Guide Selectapension

27 Indexation Tax Relief New Contribution Start Date Contributions continue to age Other Age Indexation of the regulars can be selected from the dropdown list A tax percentage can be entered. The amount of tax entered here will affect the net figure A start date for the regular contributions can be entered or selected from the calendar The system will assume that the contributions will continue until the retirement date unless otherwise specified If regular contributions are to an age that differs from the retirement age, then that age can be input here *Assumptions can be overridden as in previous plans by selecting Override Assumptions ADDITIONAL SAVINGS CONTRIBUTION An additional savings contribution can also be added as shown in the illustration below. Single Contribution Regular Contribution Frequency Indexation New Contribution start date Contributions continue to age Other Age Enter a single contribution amount Enter a regular contribution amount Enter the frequency for the monthly contribution If there is any indexation on the regular contributions, this can be entered here A start date for the regular contribution can be entered or selected from the calendar This field will be pre populated with the age for which the analysis is to be run If the regular contributions are to continue to a different date then this can be entered 27. Retirement Planning User Guide Selectapension

28 6. ESTIMATE BENEFITS ESTIMATE OF BENEFITS INCLUDING SHORTFALL ANALYSIS The benefits estimate will show a detailed view of all pensions, contributions and investments added at the given retirement date. All the information entered previously will be pulled through to this report. A shortfall analysis will also be included should this option be selected at the beginning of the analysis. Should there be a shortfall between the target income and the estimated final pension amount, it will be shown as per the illustration above. If an additional contribution is to be specified at this stage, it can be added by clicking on the Specify Additional Contribution button. 28. Retirement Planning User Guide Selectapension

29 RESULTS The year on year income can be viewed by clicking on the Income Year on Year button shown above. This option will provide details of the income available from the selected retirement date through to future years. This information can also be viewed in graph format as shown below. 29. Retirement Planning User Guide Selectapension

30 7. PRINT OPTIONS To print the full report click on the Report button. The Analysis Label is optional. Any text entered here will appear on the report cover. This label can be used to identify a report when different versions have been produced. Click Create Report to produce a PDF document. This can be printed and saved. All reports produced will be stored within Archived Reports for future reference. 30. Retirement Planning User Guide Selectapension