PENSION TRANSFER REPORT

Transcription

1 PENSION TRANSFER REPORT Money Purchase Arrangements CLIENT NAME: Alan Plan CLIENT Ref: Pas1 FROM: Various TO: Scottish Life Pension Portfolio (Fee Option) ADVISER NAME: Paul Smith REPORT PRINT DATE: 13/02/2009 Page 1

2 Analysis Report Introduction The purpose of this analysis is to provide information, which will assist you to make an informed decision, on whether or not, to transfer all or some of your pension funds to an alternative Pension arrangement. This analysis does not, on its own, show whether or not transferring your funds is advisable, as that also depends on many other factors, such as your attitude to risk and your personal circumstances and objectives. It does, however, give an indication of the likelihood of being able to match or exceed the fund provided by the Existing plans with a transfer to an alternative plan based on a charges comparison. Projections have been provided to indicate the possible fund value at retirement based on assumed growth rates this is compared with the projected fund if invested in: Scottish Life Pension Portfolio (Fee Option) The analysis will show the results of this comparison as: 1. The estimated fund value at retirement from the providers. 2. The estimated annual investment return needed, from the Proposed Plan, to provide a fund at retirement age of 65 equal to that of your Existing arrangements. 3. The estimated percentage difference between the proposed alternative Pension policy and your Existing arrangements at retirement. 4. The immediate effect on your fund as a result of the transfer. 5. The fund values that may be paid as a death benefit immediately following transfer. This analysis needs to be read in conjunction with the illustrations provided by the recommended provider and any recommendations made by your adviser. The analysis has been based on your personal information and the details supplied by your existing plan providers. Personal Pension Policies These policies operate on the Money Purchase basis (also known as Defined Contribution ) & provide a fund of money, at retirement, which is then used to purchase a pension and normally a Tax Free Lump Sum. The amount of the fund at retirement is dependent upon the level of contributions paid, the investment return on the contributions once invested, and the charges under the policy. At retirement the fund is normally used to provide a pension by purchasing an annuity in the open market. The amount of pension provided is therefore dependent upon the annuity rates then available in the market. Page 2

3 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 result of this analysis. Personal Information Name Mr Alan Plan Date of Birth 19/06/1950 Sex Male Marital Status Spouse's Date of Birth Other Dependants Divorced N/A No Health Status Attitude to Risk Employment Normal Medium Employed Retirement Age for Analysis 65 Plans for analysis Plan Name AXA Fund Value 46, Transfer Value 46, Fund Valuation Date 11/02/2009 Current Contributions (Monthly), Indexation 0% Plan Name AXA Fund Value 19, Transfer Value 19, Fund Valuation Date 12/02/2009 Current Contributions (Monthly), Indexation 0% Page 3

4 Notes & Assumptions The illustrations take into account the current charging structure of the Scottish Life Pension Portfolio (Fee Option) and your existing arrangements. The fund available at retirement will depend upon the actual growth in your selected plan and the funds. The figures are not guaranteed. All firms use the same rates to illustrate how funds may be converted into a pension but their charges vary. The maximum that growth rates can be illustrated at is set by the FSA, some providers however choose to show lower rates. This comparison is on a like for like basis. The actual transfer value received may be higher or lower than that shown due to investment fluctuations between the calculation date of this analysis & completion of the transfer. You should be aware that the choice of funds available with Scottish Life may differ from your current providers. This could impact on potential fund performance. The figures illustrated for the plan considered assume that investment will be with the provider s standard default fund & charges unless otherwise specified. Where part of, or the entire fund is Protected Rights it is assumed that no further contracting out rebates will be received. Where regular premiums are indexed by RPI the increase will be 4.5% lower than the growth rate quoted i.e. if growth is shown at 7% RPI is assumed to be 2.5%, when indexed by NAE the increase will be 3% lower than the growth rate quoted i.e. at 7% growth NAE is assumed to be 4%. When projected fund values are shown in Today s terms inflation is assumed to be 2.5%pa. The projected values are rounded down to three significant figures as per the industry standard in line with FSA rules which means that 109,100 is shown as 109,000. Where there are multiple ceding plans or benefits with individual projected values below 100,000 which together are above 100,000 the accumulative projections may include 4 significant figures i.e. 75, ,500 = 109,100, where as the accumulated transfer may achieve 109,600 but would be shown as 109,000 consequently the rate of return required and effect on fund shown may in some instances conflict with the comparison of projections. Page 4

5 ACCUMULATIVE COMPARISON FUNDS TRANSFERRED TO Scottish Life Pension Portfolio (Fee Option) Projected Fund resulting from transfer value and future contributions at proposed age of 65 Assumed Growth Rates 5% 9% Existing Plans 90, ,000 New Plan - Scottish Life - Pension Portfolio (Fee Option) 92, ,000 Rate of Return Required from Scottish Life 4.52% 8.51% The effect this will have on the fund if moved to Scottish Life +2.79% +2.77% These figures assume that you transfer your existing fund and pay the same level of future contributions into the Scottish Life Pension Portfolio (Fee Option) considered. Where the total projected fund value from the receiving scheme is 100,000 or more, that figure will be rounded down to the nearest thousand. Please see the notes page. Low rate growth results comparison Page 5

6 AXA The figures below take into account your AXA transfer value of 46, and your regular contributions of per month assuming no increases Projected Fund resulting from transfer value and future contributions at proposed age of 65 Assumed Growth Rates 5% 7% 9% Existing Plan - AXA ,000 69,600 77,900 New Plan - Scottish Life - Pension Portfolio (Fee Option) 63,500 71,300 79,900 Rate of Return Required from Scottish Life 4.56% 6.56% 8.54% The effect this will have on the fund if moved to Scottish Life +2.57% +2.54% +2.61% These figures assume that you transfer your existing fund and pay the same level of future contributions into the Scottish Life Pension Portfolio (Fee Option) considered. Redirection of contributions, Paid-up fund remains with current provider at proposed age of 65 Assumed Growth Rates 5% 7% 9% Existing Plan - AXA ,700 64,000 71,900 New Plan - Scottish Life - Pension Portfolio (Fee Option) 4,800 5,110 5,430 Total of existing plan Paid-up and Redirection of Contributions Values 61,500 69,100 77,300 Rate of Return Required from Scottish Life 8.17% 9.97% 12.21% The effect this will have on the fund if moved to Scottish Life -0.8% -0.7% -0.72% These figures assume that you pay the same level of future contributions into the Scottish Life Pension Portfolio (Fee Option) considered instead of paying them into your existing plan. FUND VALUE COMPARISON On the day of transfer, the value of the funds in your existing arrangements and the proposed replacement plan are as follows: AXA , Scottish Life - Pension Portfolio (Fee Option) 46, The day one effect of transfer DEATH BENEFIT COMPARISON On the day of transfer, the capital value of the death benefits under your existing arrangements and the proposed replacement plan are as follows: AXA , Page 6

7 Scottish Life - Pension Portfolio (Fee Option) 46, Page 7

8 AXA The figures below take into account your AXA transfer value of 19, and your regular contributions of per month assuming no increases Projected Fund resulting from transfer value and future contributions at proposed age of 65 Assumed Growth Rates 5% 9% Existing Plan - AXA ,100 35,100 New Plan - Scottish Life - Pension Portfolio (Fee Option) 28,400 35,400 Rate of Return Required from Scottish Life 4.81% 8.83% The effect this will have on the fund if moved to Scottish Life +1.09% +0.94% These figures assume that you transfer your existing fund and pay the same level of future contributions into the Scottish Life Pension Portfolio (Fee Option) considered. Redirection of contributions, Paid-up fund remains with current provider at proposed age of 65 Assumed Growth Rates 5% 9% Existing Plan - AXA Unknown Unknown New Plan - Scottish Life - Pension Portfolio (Fee Option) 4,130 4,670 Total of existing plan Paid-up and Redirection of Contributions Values Unknown Rate of Return Required from Scottish Life n/a * n/a * Unknown The effect this will have on the fund if moved to Scottish Life Unknown Unknown These figures assume that you pay the same level of future contributions into the Scottish Life Pension Portfolio (Fee Option) considered instead of paying them into your existing plan. * The actual yield required has not been calculated but is in excess of 25% FUND VALUE COMPARISON On the day of transfer, the value of the funds in your existing arrangements and the proposed replacement plan are as follows: AXA , Scottish Life - Pension Portfolio (Fee Option) 19, The day one effect of transfer DEATH BENEFIT COMPARISON On the day of transfer, the capital value of the death benefits under your existing arrangements and the proposed replacement plan are as follows: AXA , Scottish Life - Pension Portfolio (Fee Option) 19, Page 8

9 PROPOSED PENSION PLAN This analysis compares the estimated projected fund value provided by your existing arrangements with the fund which may be provided by the following pension policy: - Standard Charges Scottish Life Pension Portfolio (Fee Option) (Managed) Adviser Fee Advisor Fee Annual Management Charge As Specified As Specified 0.7% tiered The value of these standard plan charges may vary depending on the size of the fund or investment, they are based on an assumed investment fund and the level of commission specified. If other funds or level of commission are selected the results of the analysis would be different. Adviser Commission [No uplift applied] Regular Premium: Initial 25% (Annualised Premium) Fund Based 0% Page 9

10 TAX FREE LUMP SUM AT NORMAL RETIREMENT AGE - 65TH BIRTHDAY Set out below is a comparison of the estimated Tax Free Lump Sum that may be provided on retirement at proposed age of 65 Existing Schemes Scottish Life Pension Portfolio (Fee Option) 22,500 23,100 Value of Tax Free Lump Sum Assuming Low Growth Assumptions 1. The value of the investments in the Scottish Life Pension Portfolio (Fee Option) are based on medium level growth rate before charges are deducted. 2. Retail prices Index (RPI) 2.5%. 3. The Standard Lifetime Limit will increase from 1.5m in 2006/07 to 1.8m in 2010/11 and remain until 2015/16 and RPI thereafter. (This is only relevant if you have a Protected Tax Free lump sum in respect of membership of the benefits accrued by the scheme before 6th April 2006). Page 10

11 DEATH BENEFIT COMPARISON On the day of transfer, the capital value of the death benefits under your existing arrangements and the proposed replacement plan are as follows: AXA , AXA , Total 65, Scottish Life Pension Portfolio (Fee Option) 65,200 If the death benefit available after transfer is lower than that provided by the existing arrangements, consideration should be given to replacing the shortfall. A lump sum death benefit is available up to 100% of the fund. A tax charge may be levied on any amount above the Lifetime Limit tax-free cash allowance. After transfer the proposed Scottish Life Pension Portfolio (Fee Option) will provide 99.01% of the existing plan s death benefit Page 11

12 Summary Transfer Comparison Projected Fund Value at proposed age 65 Provider Plan 5% 9% Personal Pension (FVR) additional term AMC Stakeholder Pension (FVR) additional term AMC 94, ,000 94, ,000 Personal Pension (FVR) 1%AMC 94, ,000 Stakeholder Pension (FVR) 1%AMC 94, ,000 Personal Pension (FVR) 1.5%AMC 94, ,000 Legal & General PP2000(FBC) 93, ,000 Legal & General Stakeholder(FBC) 93, ,000 Standard Life Personal Pension Flex 93, ,000 Standard Life Stakeholder Pension Plan 93, ,000 Scottish Widows Clerical Medical Flexible Pension Plan Additional AMC Option Retirement Account Scaled Commission Option Futureproof Individual Pension Reduced Allocation 93, ,000 93, ,000 93, ,000 Generic Stakeholder 1% AMC 92, ,000 Generic Personal Pension 1% AMC 92, ,000 Generic Buyout Plan 1% AMC 92, ,000 Generic SIPP 1% AMC 92, ,000 Scottish Life Pension Portfolio (Fee Option) 92, ,000 Scottish Life Pension Portfolio (SIPP Option) 92, ,000 AXA AXA Flexible Pension Plan Adviser Charge Option Individual Personal Pension Plan (Initial) Self Invested Personal Pension (Initial) 92, ,000 92, ,000 92, ,000 Winterthur Life The One - Personal Pension (Initial) 92, ,000 Winterthur Life The One - Personal Pension (Level) 92, ,000 Stakeholder Pension 1%AMC 91, ,000 Personal Pension 1%AMC 91, ,000 Scottish Widows Retirement Account Flexible Commission Option 91, ,000 Generic Stakeholder 1.25% AMC 91, ,000 Personal Pension 1.5%AMC 91, ,000 Page 12

13 Flexible Pension Plan Establishment Charge Option 91, ,000 Liverpool Victoria Personal Pension 90, ,000 Personal Pension additional term AMC Stakeholder Pension additional term AMC 90, ,000 90, ,000 Existing Plan 90, ,000 Generic Stakeholder 1.5% AMC 89, ,000 Nucleus Nucleus Pension Account 88, ,000 Winterthur Life The One - Self Invested Option 86, ,000 MW Pensions Acorn SIPP 84, ,000 MW Pensions SIPP2 83, ,000 SIPP Centre SIPP Centre 83, ,000 Cooper Parry The Cooper Parry SIPP 82, ,000 AXA Scottish Life Self Invested Personal Pension (Level) Pension Portfolio (Standard Commission Option) Clerical Medical Futureproof Individual Pension - Interim Fund Charge AXA Individual Stakeholder Pension (Level) Unavailable Unavailable Unavailable Unavailable Norwich Union Stakeholder Pension (Initial) Unavailable Norwich Union Stakeholder Pension (Level) Unavailable Legal & General PP2000(IC) Unavailable Legal & General Stakeholder(IC) Unavailable AXA Clerical Medical AXA Clerical Medical Clerical Medical Clerical Medical Individual Stakeholder Pension (Inital) FutureProof Individual Pension Plan 1%AMC Individual Personal Pension Plan (Level) Futureproof Individual Stakeholder 1%AMC FutureProof Individual Pension Plan 1.5%AMC FutureProof Individual Stakeholder 1.5%AMC Unavailable Unavailable Unavailable Unavailable Unavailable Unavailable Page 13

14 Commission The commission quoted is based on the providers 100% base and does not include any IFA specific split. The commission quoted does not include any IFA specific terms. The level and style of commission varies between providers. Commission at proposed age 65 Provider Plan Fund (5%) Initial (Single) Personal Pension (FVR) additional term AMC Stakeholder Pension (FVR) additional term AMC Personal Pension (FVR) 1%AMC Stakeholder Pension (FVR) 1%AMC Personal Pension (FVR) 1.5%AMC Level / Initial (Regular) Fund- Based Total 94,400 1, ,620 94,300 1, ,430 94,300 1, ,430 94,300 1, ,430 94,300 1, ,620 Legal & General PP2000(FBC) 93, ,500 1,500 Legal & General Stakeholder(FBC) 93, ,500 1,500 Standard Life Personal Pension Flex 93, ,500 1,500 Standard Life Scottish Widows Clerical Medical Stakeholder Pension Plan Flexible Pension Plan Additional AMC Option Retirement Account Scaled Commission Option Futureproof Individual Pension Reduced Allocation 93, ,500 1,500 93,300 1, ,080 93,200 1, ,280 93,200 1, ,200 Generic Stakeholder 1% AMC 92,600 1, ,200 Generic Personal Pension 1% AMC 92,600 1, ,200 Generic Buyout Plan 1% AMC 92,600 1, ,200 Generic SIPP 1% AMC 92,600 1, ,200 Scottish Life Pension Portfolio (Fee Option) 92,600 1, ,280 Page 14

15 Scottish Life AXA AXA Winterthur Life Winterthur Life Scottish Widows Flexible Pension Plan Adviser Charge Option Pension Portfolio (SIPP Option) Individual Personal Pension Plan (Initial) Self Invested Personal Pension (Initial) The One - Personal Pension (Initial) The One - Personal Pension (Level) Stakeholder Pension 1%AMC Personal Pension 1%AMC Retirement Account Flexible Commission Option Generic Stakeholder 1.25% AMC Personal Pension 1.5%AMC Flexible Pension Plan Establishment Charge Option 92,500 1, ,280 92,500 1, ,280 92,200 1, ,210 92,200 1, ,210 92,100 1, ,280 92,100 1, ,200 91,300 1, ,210 91,300 1, ,210 91,300 1, ,280 91,300 1, ,200 91,200 1, ,790 91,100 1, ,250 Liverpool Victoria Personal Pension 90,900 1, ,080 Personal Pension additional term AMC Stakeholder Pension additional term AMC 90,300 1, ,280 90,300 1, ,280 Generic Stakeholder 1.5% AMC 89,900 1, ,200 Nucleus Winterthur Life Nucleus Pension Account The One - Self Invested Option 88,000 1, ,200 86,800 1, ,200 MW Pensions SIPP2 83,900 1, ,210 MW Pensions Acorn SIPP 84,500 1, ,210 SIPP Centre SIPP Centre 83,200 1, ,460 Cooper Parry The Cooper Parry SIPP 82,400 1, ,200 Page 15

16 PENSION TRANSFER COMPARISON FILE SUMMARY Name Mr Alan Plan Date 19/06/1950 Sex Male Marital Status Divorced Spouse's Date of Birth N/A Other Dependants No Health Status Normal Attitude to Risk Medium Desired Retirement Age Proposed Retirement Age 65 ACCUMULATIVE FUNDS TRANSFERRED TO Scottish Life Pension Portfolio (Fee Option) Projected Fund resulting from transfer value and future contributions at proposed age of 65 Assumed Growth Rates 5% 9% Existing Plans 90, ,000 New Plan - Scottish Life - Pension Portfolio (Fee Option) 92, ,000 Rate of Return Required from Scottish Life 4.52% 8.51% The effect this will have on the fund if moved to Scottish Life +2.79% +2.77% These figures assume that you transfer your existing fund and pay the same level of future contributions into the Scottish Life Pension Portfolio (Fee Option) considered. Where the total projected fund value from the receiving scheme is 100,000 or more, that figure will be rounded down to the nearest thousand. Please see the notes page. Page 16

17 Record of Input Data Print Date 13/02/2009 Client Data Ref Title Mr Forename Alan Surname Plan Sex Male Date of Birth 19/06/1950 Partner's Date of Birth N/A Marital Status Divorced Health Status Normal Other Dependants No Enhanced / Primary Protection Applicable Attitude to Risk Medium Employment Employed Plan(s) for Transfer Scheme Name AXA Type Personal Pension Fund Valuation Date 11/02/2009 Fund Value 46, Fund Value Transfer 46, Pre 97Protected Rights TV 18, Regular Contributions Frequency Monthly Increase Rate 0% Current Death Benefits Value 46, Proposed Retirement Age 65 Monetary Values / Today's terms Monetary Growth Rates Growth Rates Low Med High 5% 7% 9% Projections at age 65. Projections Fund - Non Protected age 65 34, , , Projections Fund - Non Protected age 65 - Inc Ongoing 39, , , Projections Fund - Protected age 65 22, , , Page 17

18 Scheme Name AXA Type Retirement Annuity Fund Valuation Date 12/02/2009 Fund Value 19, Fund Value Transfer 19, Pre 97Protected Rights TV 0.00 Post 97Protected Rights TV 0.00 Regular Contributions Frequency Monthly Increase Rate 0% Current Death Benefits Value 19, Proposed Retirement Age 65 Monetary Values / Today's terms Monetary Growth Rates Growth Rates Low High 5% 9% Projections at age 65. Projections Fund - Paid Up Projections Fund - Inc Ongoing 28, , Page 18

19 Plans Selected For Comparison Provider Selection All Selected AXA Individual Stakeholder Pension (Inital) Clerical Medical Futureproof Individual Stakeholder 1%AMC Generic Stakeholder 1% AMC Generic Stakeholder 1.25% AMC Generic Stakeholder 1.5% AMC Generic Buyout Plan 1% AMC Generic SIPP 1% AMC Legal & General PP2000(FBC) Legal & General Stakeholder(FBC) Personal Pension 1%AMC Stakeholder Pension 1%AMC Flexible Pension Plan Adviser Charge Option Scottish Life Pension Portfolio (Standard Commission Option) Standard Life Personal Pension Flex Standard Life Stakeholder Pension Plan Generic Personal Pension 1% AMC Personal Pension (FVR) 1%AMC Flexible Pension Plan Additional AMC Option AXA Self Invested Personal Pension (Level) Scottish Life Pension Portfolio (SIPP Option) Scottish Widows Retirement Account Flexible Commission Option MW Pensions Acorn SIPP Liverpool Victoria Personal Pension MW Pensions SIPP2 Clerical Medical Futureproof Individual Pension - Interim Fund Charge Clerical Medical Futureproof Individual Pension Reduced Allocation Scottish Widows Retirement Account Scaled Commission Option Stakeholder Pension (FVR) 1%AMC Page 19

20 Plans Selected For Comparison AXA Individual Personal Pension Plan (Level) AXA Individual Personal Pension Plan (Initial) AXA Self Invested Personal Pension (Initial) Clerical Medical FutureProof Individual Pension Plan 1%AMC Personal Pension 1.5%AMC Personal Pension additional term AMC Stakeholder Pension additional term AMC Personal Pension (FVR) 1.5%AMC Personal Pension (FVR) additional term AMC Stakeholder Pension (FVR) additional term AMC AXA Individual Stakeholder Pension (Level) Norwich Union Stakeholder Pension (Initial) Norwich Union Stakeholder Pension (Level) Legal & General PP2000(IC) Legal & General Stakeholder(IC) SIPP Centre SIPP Centre Cooper Parry The Cooper Parry SIPP Flexible Pension Plan Establishment Charge Option Nucleus Nucleus Pension Account Clerical Medical FutureProof Individual Pension Plan 1.5%AMC Clerical Medical FutureProof Individual Stakeholder 1.5%AMC Winterthur Life The One - Personal Pension (Level) Winterthur Life The One - Self Invested Option Winterthur Life The One - Personal Pension (Initial) Scottish Life Pension Portfolio (Fee Option) Page 20