Income Drawdown & Annuity Report Flexible Retirement Optimiser

Transcription

1 Income Drawdown & Annuity Report Flexible Retirement Optimiser Client Name: Rachel Jones Client Ref: RP Adviser Name: Fred Bloggs Report Print Date: 11/09/2017 _

2 This report has been based on the following information. Please make it known if any part of this information is incorrect as it may affect the results of the analysis. Personal Information Ref RP Title Mrs Forename Rachel Middle Initials Surname Jones Sex Female Date of Birth 28/07/1960 Employment Status Employed Marital Status Married Partner's Date of Birth 14/04/1967 Partner's Forename Rupert Partner's Surname Jones Partner's Sex Male Health Status Normal Dependents No Dependent Notes Attitude to Risk Medium Lifetime Allowance Protection None Page 2

3 Retirement Options Uncrystallised Funds Pension Lump Sums (UFPLS) Single or multiple withdrawals can be made. Each withdrawal will consist of 25% tax free and the remainder taxable at your marginal rate. Upon taking UFPLS, your pension contribution allowance will reduce to 4,000 each year. Flexi Access Drawdown Income Drawdown allows you to choose the amount you wish to draw from your pension pot every year, the pot decreases with every withdrawal but the money left invested could grow. Take your tax free cash (usually 25%) in one payment and leave the remaining pot invested and withdraw as and when you need to. All future withdrawals will be taxed at your marginal rate. or Phased Drawdown; typically taking a mixture of tax free and taxable withdrawals. or Withdraw all your pension pot as one payment, 25% tax free and the remainder taxable at your marginal rate. Annuity An annuity is an insurance contract which guarantees an income either for a fixed term or for life. There are different types of annuities available to choose from depending on your needs including the ability to add spouse / civil partners benefits. Level - An unchanging income from the outset. Escalating - An income which increases each year which may or may not be inflation linked. Page 3

4 Proposed Analysis The report has been based on the following information. Please make it known if any part of this information is incorrect as it may affect the results of the analysis. Calculation Date 24/07/2017 Projection Basis Projection Basis Target Age Inflation Adjusted Headline Rates 85 (Calculated using ONS Life Expectancy Tables) Proposed Contributions Gross Fund Value 250, Pension Commencement Lump Sum 62, Net Fund Value 187, Estimate of Tax on Day One Withdrawal Withdrawing the full pension fund from a drawdown arrangement could / may have the following tax implications. This has been calculated assuming 25% is taken as a tax free lump sum, Income Tax Rates and the Standard Personal Allowance for the 2017/18 tax year. Gross Fund Value 250, Net Fund Value 179, Tax Liability 70, Page 4

5 Retirement Income Strategy The below income strategy has been created to demonstrate the target income required from your total fund. This strategy has been created using Income Drawdown and an Annuity to demonstrate how long your target income will last using 50% of your income guaranteed. The Annuity quote from Legal & General is detailed below. Target Income Gross 7, Net 7, Indexation RPI Annuity Summary Annuity Provider Legal & General Annual Annuity 4, Escalation RPI Guaranteed Period 0 Years Type Single Dependents Percentage 0% Payable Monthly Page 5

6 Full Analysis at Target Age 85 Strategy: Indexed Income Strategy - Medium Growth Rate - 5% The below graph demonstrates the sustainability of your target income of 7,500 increasing by RPI until the following ages: Full Drawdown - past target age Blended 50% - age 64 Annuity - target income cannot be achieved Page 6

7 Strategy: Indexed Income Strategy - Medium Growth Rate - 5% The below graph demonstrates the impact on the fund value to the target age of 85 withdrawing the target income. The fund value will be exhausted at the following ages: Full Drawdown - past target age Blended 50% - age 65 Annuity - fund value used for annuity purchase Page 7

8 Strategy: Indexed Income Strategy - Medium Growth Rate - 5% The below table demonstrates the sustainability of your target income of 7,500 increasing by RPI until the following ages: Full Drawdown - past target age Annuity - target income cannot be achieved Target Income vs Actual Income Age Target Income Full Guaranteed Income Full Drawdown Income Gross Net Gross Net Fund Value Gross Net Fund Value 58 7,500 6,000 4,520 4, ,500 7, , ,500 6,000 4,520 3, ,500 6, , ,500 5,999 4,520 3, ,500 6, , ,500 5,999 4,520 3, ,500 6, , ,500 5,999 4,520 3, ,500 6, , ,500 6,000 4,520 3, ,500 6, , ,500 6,000 4,520 3, ,500 6, , ,500 5,999 4,520 3, ,500 6, , ,500 6,000 4,520 3, ,500 6, , ,500 6,000 4,520 3, ,500 6, , ,500 5,999 4,520 3, ,500 6, , ,500 5,999 4,520 3, ,500 6, , ,500 6,000 4,520 3, ,500 6, , ,500 5,999 4,520 3, ,500 6, , ,500 6,000 4,520 3, ,500 6, , ,500 5,999 4,520 3, ,500 6, , ,500 5,999 4,520 3, ,500 6, , ,500 5,999 4,520 3, ,500 6,000 98, ,500 5,999 4,520 3, ,500 6,000 92, ,500 5,999 4,520 3, ,500 6,000 87, ,500 6,000 4,520 3, ,500 6,000 81, ,500 6,000 4,520 3, ,500 6,000 75, ,500 5,999 4,520 3, ,500 6,000 69, ,500 5,999 4,520 3, ,500 6,000 63, ,500 5,999 4,520 3, ,500 6,000 57, ,500 5,999 4,520 3, ,500 6,000 50, ,500 5,999 4,520 3, ,500 6,000 44, ,500 6,000 4,520 3, ,500 6,000 37,536 Page 8

9 Strategy: Indexed Income Strategy - Medium Growth Rate - 5% The below table demonstrates the sustainability of your target income of 7,500 increasing by RPI until the following ages: Blended 50% - age 64 Blended Solution 50% Income Guaranteed from Annuity Purchase Age Target Income Guaranteed Income Drawdown Income Gross Net Gross Net Gross Net Fund Value 58 7,500 6,000 3,750 3,750 3,750 3,750 22, ,500 6,000 3,750 3,000 3,750 3,000 19, ,500 5,999 3,750 3,000 3,750 3,000 16, ,500 5,999 3,750 3,000 3,750 3,000 12, ,500 5,999 3,750 3,000 3,750 3,000 9, ,500 6,000 3,750 3,000 3,750 3,000 5, ,500 6,000 3,750 3,000 3,750 3,000 1, ,500 5,999 3,750 3,000 1,842 1, ,500 6,000 3,750 3, ,500 6,000 3,750 3, ,500 5,999 3,750 3, ,500 5,999 3,750 3, ,500 6,000 3,750 3, ,500 5,999 3,750 3, ,500 6,000 3,750 3, ,500 5,999 3,750 3, ,500 5,999 3,750 3, ,500 5,999 3,750 3, ,500 5,999 3,750 3, ,500 5,999 3,750 3, ,500 6,000 3,750 3, ,500 6,000 3,750 3, ,500 5,999 3,750 3, ,500 5,999 3,750 3, ,500 5,999 3,750 3, ,500 5,999 3,750 3, ,500 5,999 3,750 3, ,500 6,000 3,750 3, Page 9

10 Strategy: Indexed Income Strategy - Medium Growth Rate - 5% The below graph demonstrates the maximum sustainable income from your fund until the target age 85. Dependent on the option chosen, the income could be: Full Drawdown - 8,506 increasing by RPI Blended 50% - 4,912 increasing by RPI Annuity - 4,520 increasing by RPI Page 10

11 Strategy: Indexed Income Strategy - Medium Growth Rate - 5% The below graph demonstrates the impact on the fund value to the target age of 85 withdrawing the maximum sustainable income. Page 11

12 Strategy: Indexed Income Strategy - Medium Growth Rate - 5% The below table demonstrates the maximum sustainable income from your fund until the target age 85. Dependent on the option chosen, the income could be: Full Drawdown - 8,506 increasing by RPI Annuity (Full Guaranteed Income) - 4,520 increasing by RPI Target Income vs Available Income Age Target Income Full Guaranteed Income Full Drawdown Income Gross Net Gross Net Fund Value Gross Net Fund Value 58 7,500 6,000 4,520 4, ,506 6, , ,500 6,000 4,520 3, ,506 6, , ,500 5,999 4,520 3, ,506 6, , ,500 5,999 4,520 3, ,506 6, , ,500 5,999 4,520 3, ,506 6, , ,500 6,000 4,520 3, ,506 6, , ,500 6,000 4,520 3, ,506 6, , ,500 5,999 4,520 3, ,506 6, , ,500 6,000 4,520 3, ,506 6, , ,500 6,000 4,520 3, ,506 6, , ,500 5,999 4,520 3, ,506 6, , ,500 5,999 4,520 3, ,506 6, , ,500 6,000 4,520 3, ,506 6, , ,500 5,999 4,520 3, ,506 6, , ,500 6,000 4,520 3, ,506 6,805 96, ,500 5,999 4,520 3, ,506 6,805 90, ,500 5,999 4,520 3, ,506 6,805 83, ,500 5,999 4,520 3, ,506 6,805 76, ,500 5,999 4,520 3, ,506 6,805 69, ,500 5,999 4,520 3, ,506 6,805 62, ,500 6,000 4,520 3, ,506 6,805 55, ,500 6,000 4,520 3, ,506 6,805 48, ,500 5,999 4,520 3, ,506 6,805 40, ,500 5,999 4,520 3, ,506 6,805 32, ,500 5,999 4,520 3, ,506 6,805 24, ,500 5,999 4,520 3, ,506 6,805 16, ,500 5,999 4,520 3, ,506 6,805 8, ,500 6,000 4,520 3, ,506 6, Page 12

13 Strategy: Indexed Income Strategy - Medium Growth Rate - 5% The below table demonstrates the maximum sustainable income from your fund until the target age 85. Dependent on the option chosen, the income could be: Blended 50% - 4,912 increasing by RPI Blended Solution 50% Income Guaranteed from Annuity Purchase Age Target Income Guaranteed Income Drawdown Income Gross Net Gross Net Gross Net Fund Value 58 7,500 6,000 3,750 3,000 1, , ,500 6,000 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 6,000 3,750 3,000 1, , ,500 6,000 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 6,000 3,750 3,000 1, , ,500 6,000 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 6,000 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 6,000 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 6,000 3,750 3,000 1, , ,500 6,000 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 5,999 3,750 3,000 1, , ,500 6,000 3,750 3,000 1, Page 13

14 Proposed Pension Plan Standard Charges Royal London Pension Portfolio Annual Charge 0.45% pa Large Fund Discount; 0-31, %, 31,500-63, %, 63, , %, 189, , %, 631, % Income Release Charge 191 The value of these standard plan charges may vary depending on the size of the fund or investment, and are based on an assumed investment fund and the level of remuneration (if any) which will normally be taken. If other 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 under management. Fund Name Split % Initial % Ongoing % * Mixed Investment 0%-35% Shares (100%) RLP Defensive Managed Pen Default Fund 0 1 Adjustment to charges 0 0 * This is the total charge inclusive of annual management charges, additional expenses and negotiated discounts where applicable. Plan Features This report has been produced assuming the following product features are available :- UFPLS Uncrystallised Fund Pension Lump Sum (UFPLS) can be taken as a single or as multiple lump sums from defined contribution plans. Page 14

15 Investment Performance Report Royal London Pension Portfolio Standardised Performance: 1 year to the end of August Fund Name RLP Defensive Managed Pen Performance Data not available Past 12 Months Growth Performance Information Fund Name RLP Defensive Managed Pen Sep '16 Oct '16 Past 12 Months Growth Performance Nov '16 Dec '16 Jan '17 Feb '17 Mar '17 Apr '17 May '17 Jun ' n/a n/a Jul '17 Aug '17 Please note that past performance cannot be a guide to the future and investment returns cannot be guaranteed. Information produced by Selectapension Ltd in conjunction with data supplied by Morningstar and other external sources. Page 15

16 Report as of 11 Sep 2017 RLP Defensive Managed Pension Fund Morningstar Category Index Fund Benchmark Morningstar Rating % Others, 30% Markit iboxx Non Gilts 1-15Y TR, QQQ 17.5% IPD UK All... Investment Objective "The fund invests in other Royal London Asset Management (RLAM) funds. The manager ensures the maximum potential for capital growth exists for the given level of risk. The underlying investments include the Global Managed, Property, Short (5yr) Index Linked and Short (5yr) Corporate Bond funds." K Growth Of (GBP) Fund Index Category /17 Performance Fund /- Index /- Category Percentile Rank Standardised Performance 1 Yr to 1 Yr to 1 Yr to 1 Yr to 1 Yr to 30 Jun Jun Jun Jun Jun Months Total Return (bid to bid). Source: Morningstar, net income reinvested. This table complies with the FCA's regulations to compare different products from different providers. Trailing Returns (8 Sep 2017) 3 Months 6 Months 1 Year 3 Years Annualised 5 Years Annualised Return % +/-Idx +/-Cat Quarterly Returns 1st qtr 2nd qtr 3rd qtr 4th qtr Portfolio 31 Jul 2017 Risk Profile Asset Allocation % Port. UK/Euro Equity NA Equity Other Equity 4.08 Bonds Cash 3.48 Property Other 7.63 Morningstar Style Box Equity Style Value Style Blend Growth Size Large Mid Small Fixed Income Style Credit Quality High Med Low Ltd Mod Ext Interest Rate Sensitivity Risk Measures 3-Yr Alpha Yr Beta 0.43 R-Squared Information Ratio Tracking Error Yr Sharpe Ratio Yr Std Dev Yr Risk bel avg 5-Yr Risk bel avg 10-Yr Risk Avg Top 10 Holdings Sector % Port. Undrly RLP Global Managed Pen Undrly RLP Property Pen Undrly RLP Short IL Bd Pen Undrly RLP Short Corp Bd Pen Rlp Short (5yr) Gilt Rlp Commodity Class A Royal London Abs Ret Govt Bd Z Royal London Cash Plus Z Acc Undrly RLP Corporate Bond Pen Royal London Global High Yield Total Stock Holdings 0 Total Bond Holdings 2 Assets in Top 10 Holdings % Operations Insurance Company Royal London Phone - Website - Inception Date 27 Sep 1996 Fund Manager RobertTalbut Manager Start Date 1 Jan 2009 NAV (8 Sep 2017) British Pence Sector Weightings % Equity h Cyclical r Basic Materials 6.75 t Consumer Cyclical y Financial Services u Real Estate 2.51 j Sensitive i Communication Services 4.03 o Energy 8.15 p Industrials a Technology k Defensive s Consumer Defensive d Healthcare f Utilities 2.93 Domicile United Kingdom Currency Pound Sterling ABI Sector Mixed Investment 0%-35% Shares... World Regions % Equity Americas United States Canada 0.02 Latin America 0.02 Greater Europe United Kingdom Eurozone 7.66 Europe - ex Euro 2.40 Europe - Emerging 0.13 Middle East / Africa 0.05 Greater Asia Japan 5.22 Australasia 1.82 Asia - Developed 3.16 Asia - Emerging 0.90 ISIN GB Minimum Additional Purchase 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 before using 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 down as well as up. ß

17 Report as of 11 Sep 2017 Morningstar Portfolio X-Ray Asset Allocation % Country Exposure % Asset Allocation Port Bmark Country Port Bmark Stocks Bonds Cash Other Not classified United Kingdom United States Japan Germany Country Port Bmark France Australia Switzerland Netherlands Republic of Korea World Regions % Port Bmark Greater Europe Port Bmark Americas Port Bmark Greater Asia < >75 Port Bmark Not Classified United Kingdom Western Europe Euro Western Europe Non Euro Emerging Europe Middle East / Africa United States Canada Central & Latin America Japan Australasia Emerging 4 Tigers Emerging Asia - Ex 4 Tigers Stock Sectors % Defensive Sensitive Cyclical Benchmark Portfolio Port Bmark h Cyclical r Basic Materials t Consumer Cyclical y Financial Services u Real Estate Port Bmark j Sensitive i Communication Services o Energy p Industrials a Technology Port Bmark k Defensive s Consumer Defensive d Healthcare f Utilities Investment Style Value Blend Growth Style Size Large Mid Small < >50 Equity Style Port Bmark Price/Book Ratio Price/Earnings Ratio Price/Cashflow Ratio Ltd Mod Ext Interest Rate Sensitivity Credit Quality High Med Low < >50 Fixed-Income Style Port Bmark Effective Duration - - Effective Maturity - - (Y) Average Credit Quality - - Top 10 Underlying Holdings Assets % Name Type Sector Country Undrly RLP Global Managed Pen Mutual Fund - Unspecified Not Classified United Kingdom Undrly RLP Property Pen Mutual Fund - Unspecified Not Classified United Kingdom Undrly RLP Short IL Bd Pen Mutual Fund - Unspecified Not Classified United Kingdom Undrly RLP Short Corp Bd Pen Mutual Fund - Unspecified Not Classified United Kingdom 9.16 Rlp Short (5yr) Gilt Bond - Treasury Future Not Classified United Kingdom 4.94 Rlp Commodity Class A Mutual Fund - Unspecified Not Classified United Kingdom 4.24 Royal London Abs Ret Govt Bd Z GBP Acc Fund Not Classified Ireland 3.48 Royal London Cash Plus Z Acc Fund Not Classified United Kingdom 2.53 Undrly RLP Corporate Bond Pen Mutual Fund - Unspecified Not Classified United Kingdom 1.97 Royal London Global High Yield Bd Z Inc Fund Not Classified Ireland Morningstar UK Limited. All Rights Reserved. Legal Information: The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar UK Limited (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar UK Limited, (4) are provided solely for informational purposes (5) are not warranted to be correct, complete, accurate or timely and the date of data published may vary from fund to fund. Morningstar UK Limited shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use and that the information must not be relied upon by you the user without appropriate verification. Morningstar UK Limited informs you as follows: (i) no investment decision should be made in relation to any of the information provided other than on the advice of a professional financial advisor; (ii) past performance is no guarantee of future results; and (iii) the value and income derived from investments can go down as well as up. ß

18 Report as of 11 Sep 2017 Morningstar Performance X-Ray Benchmark FTSE AllSh TR GBP Performance Date 31 Aug 2017 Performance Growth Of EUR Portfolio Benchmark Quarterly Performance Relative To Benchmark Trailing Returns % Port Bmark 3 Months Months Year Years Annualised Years Annualised YTD Time Period Return % Best Worst 3 Months (Jun 09-Sep 09) (Aug 08-Nov 08) 6 Months (Mar 09-Sep 09) (Aug 08-Feb 09) 1 Year (Mar 09-Mar 10) (Feb 08-Feb 09) 3 Years Annualised (Feb 09-Feb 12) 3.96 (May 13-May 16) 5 Years Annualised (Feb 09-Feb 14) 4.76 (Dec 07-Dec 12) Return Analysis Underlying Holdings Portfolio Benchmark 3 Yr Mean 8.00 Correlation Matrix Yr Standard Deviation To To To To To Top 10 Portfolio Holdings Name Weight (%) Mean Std Dev 1 RLP Defensive Managed Pen Statistics Risk And Return Statistics 3 Years 5 Years Standard Deviation Arithmetic Mean Sharpe Ratio MPT Statistics 3 Years 5 Years Alpha Beta R-Squared Information Ratio Tracking Error Morningstar UK Limited. All Rights Reserved. Legal Information: The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar UK Limited (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar UK Limited, (4) are provided solely for informational purposes (5) are not warranted to be correct, complete, accurate or timely and the date of data published may vary from fund to fund. Morningstar UK Limited shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use and that the information must not be relied upon by you the user without appropriate verification. Morningstar UK Limited informs you as follows: (i) no investment decision should be made in relation to any of the information provided other than on the advice of a professional financial advisor; (ii) past performance is no guarantee of future results; and (iii) the value and income derived from investments can go down as well as up. ß

19 Report as of 11 Sep 2017 Holding Overlap Holding Overlap The portfolio date is the most recent available for full holdings disclosure in the database. It could be that two funds have a different portfolio date. Please see disclosure pages for details. Weight in Name ISIN Weight in Sector Portfolio Date Portfolio (%) Holding (%) Portfolio Holdings Portfolio Holdings Name Type Holding Morningstar Portfolio Date Rating 1 Year 3 Years Annualised 5 Years Annualised RLP Defensive Managed Pen Fund 31 Jul 2017 QQQ Weight (%) Morningstar UK Limited. All Rights Reserved. Legal Information: The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar UK Limited (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar UK Limited, (4) are provided solely for informational purposes (5) are not warranted to be correct, complete, accurate or timely and the date of data published may vary from fund to fund. Morningstar UK Limited shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use and that the information must not be relied upon by you the user without appropriate verification. Morningstar UK Limited informs you as follows: (i) no investment decision should be made in relation to any of the information provided other than on the advice of a professional financial advisor; (ii) past performance is no guarantee of future results; and (iii) the value and income derived from investments can go down as well as up. ß

20 Critical Yield Analysis Strategy: Indexed Income Strategy Age Projected Annuity 6, , , Critical Yield Type A Required to Purchase Equal Annuity 3.15% 2.77% 2.67% Critical Yield Type B Required to Purchase Equal Annuity 5.1% 4.93% 5.02% This analysis estimates the growth that would be required (critical yield) in the pension fund to enable an annuity to be purchased at the stated ages. Critical Yield Type A assumes that drawdown is taken in line with that which would have been received from an annuity if purchased now. Critical Yield Type B assumes that drawdown is taken in line with the target income. If drawdown was to be taken in line with annuity purchase the fund would last 63 years and 0 months. Critical Yield Notes & Assumptions This illustration is a guide only and does not replace the type A / B critical yield illustration issued by the plan provider. This illustration is based on the charges applicable to the Royal London Pension Portfolio Drawdown plan specified, however the cost of the Annuity to be purchased at the age(s) shown is based on standard assumptions as laid down by the Financial Conduct Authority, the estimated growth required may not mirror that projected by Royal London Pension Portfolio. The analysis takes into account the current charging structure of the Royal London Pension Portfolio which may 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 fluctuations between 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 standard default 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 the appropriate critical yield; however it may not in practice be possible to achieve this. Page 20

21 Results Summary As at age 85 based on a 5% growth rate Strategy: Indexed Income Strategy Provider Plan Fund Value Total Income Transact Personal Pension 40, ,000 Alliance Trust Savings Select SIPP 39, ,000 Aegon One Retirement 38, ,000 Royal London Pension Portfolio 37, ,000 FundsNetwork Pension 35, ,000 Standard Life Active Money SIPP [0.8-2% AMC Funds] 35, ,000 Wealthtime SIPP 34, ,000 Ascentric Pension Account 34, ,000 Old Mutual Wealth Collective Retirement Account (Self Select) - Unbundled 32, ,000 LV= Flexible Transitions Account 29, ,000 Scottish Widows Retirement Account 27, ,000 Elevate, part of Standard Life Elevate Pension Investment Account 23, ,000 Novia Wrap 22, ,000 AJ Bell Investcentre SIPP (investing in Funds and Shares Service) 21, ,000 James Hay Partnership Wrap SIPP 15, ,000 Prudential Flexible Retirement Plan 13, ,000 Standard Life Active Money SIPP [Mutual Funds] 8, ,000 Page 21

22 Adviser Remuneration Adviser Remuneration (as input) Initial Ongoing Single 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 Transact Personal Pension 40,300 5, ,620 Alliance Trust Savings Select SIPP 39,000 5, ,620 Aegon One Retirement 38,100 5, ,620 Royal London Pension Portfolio 37,500 5, ,620 FundsNetwork Pension 35,700 5, ,620 Standard Life Active Money SIPP [0.8-2% AMC Funds] 35,600 5, ,620 Wealthtime SIPP 34,900 5, ,620 Ascentric Pension Account 34,700 5, ,620 Old Mutual Wealth LV= Collective Retirement Account (Self Select) - Unbundled Flexible Transitions Account 32,400 5, ,620 29,600 5, ,620 Scottish Widows Retirement Account 27,800 5, ,620 Elevate, part of Standard Life Elevate Pension Investment Account 23,300 5, ,620 Novia Wrap 22,900 5, ,620 AJ Bell Investcentre James Hay Partnership Prudential Standard Life SIPP (investing in Funds and Shares Service) 21,000 5, ,620 Wrap SIPP 15,300 5, ,620 Flexible Retirement Plan Active Money SIPP [Mutual Funds] 13,800 5, ,620 8,130 5, ,620 Page 22

23 Notes & Assumptions The projected fund values in this report take account of the standard charge structure applicable to each of the plans shown unless otherwise stated. They are based on an assumed investment fund. If other funds or remuneration 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 regulators but 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 1.30% 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 rate had been assumed then the required investment return (Critical Yield) would have been lower and conversely 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 1.50% p.a. 5. Life Expectancy ONS National Life Tables, Great Britain ( ) These tables are updated annually. For the purpose of this (and any other analysis) the ages shown have been 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 if the annuity has a 50% spouses pension and a 5 year guarantee, on death the spouse will be entitled to a full pension 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 be the return of any residual fund. Page 23

24 Record of Data Input Client Details Ref RP Title Mrs Forename Rachel Middle Initials Surname Jones Sex Female Date of Birth 28/07/1960 Employment Status Employed Marital Status Married Partner's Date of Birth 14/04/1967 Partner's Forename Rupert Partner's Surname Jones Partner's Sex Male Health Status Normal Dependents No Dependent Notes Attitude to Risk Medium Lifetime Allowance Protection None Notes Calculation Date 24/07/2017 Projection Basis Inflation Adjusted Projection Basis Headline Rates Target Age 85 (Calculated using ONS Life Expectancy Tables) Proposed Contributions Gross Fund Value 250, Pension Commencement Lump Sum 62, Net Fund Value 187, Current Taxable Annual Income 57 12, Page 24

25 Retirement Income Strategies Indexed Income Strategy Target Income Gross 7, Net 7, Indexation RPI Include Guarantee Yes Guaranteed Income Required from Annuity Guaranteed % 0% Guaranteed % 50% Guaranteed % 100% Annuity Summary Annuity Provider Legal & General Annual Annuity 4, Escalation RPI Guaranteed Period 0 Years Type Single Dependents Percentage 0% Payable Monthly Page 25