For Financial Advisers use only. Old Mutual Wealth s. user guide. Risk Profiler

Transcription

1 For Financial Advisers use only Old Mutual Wealth s Retirement Income Explorer tool user guide Risk Profiler

2 Contents. Contents. Introduction. Homepage 4. Landing page 5. Start risk assessment 6. Quick-start 7. Questionnaire result 8. Additional questions 9. Risk selection 0. Summary. Archived reports

3 Introduction Old Mutual Wealth s Retirement Income Explorer tool (RIET) enables you to detail your clients current and future expenditure, assets, their attitude to risk and their income needs. The tool illustrates the potential sustainability of the client s required income throughout their later life, using a calculated life expectancy. It can compare different options for taking income in retirement, and can bring to life a range of potential future outcomes for their retirement; based on risk appetites, economic scenarios and changes to income profile. It s a great tool for stimulating discussion, encouraging action and demonstrating the value of your advice. It should be noted that while the tool complements ongoing advice and suitability, it does not replace the need for them. It is not a cash flow modelling tool, and it does not offer certainty about the future but it does provide a good indication of possible outcomes in the future, using stochastic modelling. You will still need to produce a KFD and KFI for any product which is recommended and/ or reviewed. Below is an explanation of the different options you can use in the Retirement Income Explorer Tool: Quick View The Quick View option provides an initial overview of the new pension options available since April 05, once a client has reached age 55. Eight simple questions are asked about the client, their current earnings, existing pension fund, intended retirement age and required income to provide a projected fund value at retirement age. You can choose to show a range of possible outcomes based on good or poor market conditions (based on our stochastic model), which can be changed easily using a slider. The client s life expectancy and the potential sustainability of the income throughout their later life is shown. The data entered in Quick View can be carried over into the Full View option, where additional questions will need to be answered and further options are available to show a more detailed forecast. The Quick View option is explained in the separate user guide Retirement Income Explorer Quick View. Risk Profiler The Risk profiler is available to help you establish your client s attitude to risk, if you do not already use a risk Profiling tool such as the Old Mutual Wealth platform risk profiler. There are 8 attitude to risk questions, and 6 additional questions about capacity for loss which are customisable and can also be asked separately to the attitude to risk questions. A report is generated which your client can sign to confirm their agreement to, following your discussion with them. The Risk profile option is only for use within this tool, and is not compatible with Old Mutual Wealth s fund selection tools. We will explain this option in this guide. Full View The Full View option is an advanced planning tool that builds on the calculation approach of the Quick View option. It has three key additional areas of functionality: advanced tax planning to target a net income or expense requirement throughout retirement additional data entry options additional at and in retirement options. Where the Quick View option shows the gross income or fund at the target retirement date, Full View shows how the available assets and incomes can target a net-of-tax income or goal throughout the client s whole of later life. The client s expenses in retirement for utilities and other living costs can be entered optionally and used as the post-retirement target income. One-off objectives or goals can be entered to provide additional income over a period of time, for a special purchase or holiday, for example. A specific plan for the client s options for taking income from pensions and other investments can also be configured, such as whether or not to take a Pension Commencement Lump Sum at outset, or to use a blend of annuity and drawdown, for example. What if scenarios can be entered to show how changing any element of the retirement plan could impact the client s future lifestyle. The Full View option is explained in the following user guides: Retirement Income Explorer Full View Getting Started Retirement Income Explorer Full View (a more detailed version) Please also read the Due Diligence document and the Questions and Answers section on our adviser website for more information about the Retirement Income Explorer tool.

4 Homepage. After logging into Old Mutual Wealth, select the Tools tab.. select the Retirement Income Explorer tool.. Select Launch this tool.

5 Landing page. if you have previously entered details for this client on the tool, find their record using the Search function and select the Risk Profiler icon (two arrows).. select Risk profiler if you are entering details for the client for the first time. Note: The Quick View and Full View options are explained in separate user guides on our adviser website. 4

6 Start risk assessment. if you are running the assessment for a new client, enter their name. If you are running this assessment for a client whose details have already been entered onto the Retirement Income Explorer tool, their name will automatically be entered.. Quick-start displays each of the questions individually so your client can consider each one. We will explain this option in the remaining pages of this guide.. use client to the questionnaire to yourself, your client or colleague in your firm. 4. use the Print option to print or save a blank questionnaire to leave with your client to fill in. 5. use Data entry if your client has provided the answers on a blank questionnaire, so you can enter these quickly onto the tool. 6. Skip questionnaire misses out the 8 attitude to risk questions, and instead takes you to 6 customisable capacity for loss questions

7 Quick-start Each of the 8 questions are displayed individually.. select the answer the client agrees with most.. select Next question to continue.. To revisit a question, select Previous question, or select the question number. Repeat these steps for all of the 8 questions. The risk score obtained from this questionnaire is shown on the next page of this guide. 6

8 Questionnaire result. The risk level that the responses correspond to is shown.. The chances that they may be a different risk score to the one shown is explained.. The suggested asset allocation for the risk score is displayed. These are Old Mutual Wealth s asset allocations, provided by Towers Watson and updated quarterly. 4. The asset allocation is different depending on the tax wrapper. Use the drop-down field to choose CRA/ISA (pension/isa), CIB (onshore bond) or CIA (collective investment), and the asset allocation will update. 5. A summary explaining the risk score is also shown. 6. select Continue to additional questions to complete 6 capacity for loss questions, and turn to the next page of this guide. 7. select retake questionnaire to start again

9 Additional questions The additional questions step is a customisable section for further establishing the level of risk your client is prepared to take. These are to be used as a discussion point and do not affect the risk score calculation.. select the Yes or No button for each of the six questions.. if Yes is selected, a comments box is opened for you to make notes.. There is an Adviser notes section at the end of the questionnaire. 4. select Continue to go to the Risk selection screen once all of the questions have been answered. 5 Tip: Initial questions have been provided as default, but you can create your own set of questions by using the Custom option in the Additional questions section of Settings (see marker number 5) 4 8

10 Risk selection This page is used to make the risk profile selection. If the questionnaire has been completed the risk level is defaulted to the questionnaire result.. Click on a different risk level number if you wish to see the associated risk information and suggested asset allocation. You do not have to select anything if you wish to proceed using the suggested risk level.. use the product type drop-down to select the tax wrapper for the potential investment, and the suggested asset allocation for the risk profile will update.. set the chosen risk profile by clicking on the Set as selected risk profile button. 9

11 Summary This page confirms the questionnaire result and the selected risk profile. If you did not change the risk profile from the questionnaire result, these will be the same.. select Generate report to print and/or save a copy to your files. The report has a signature section for your client to sign that they agree to the risk profile you have discussed with them.. select Archive this report to keep a copy on their file in the Risk Profiler tool. The following page of this guide explains how you can retrieve an archived copy of a report. 0

12 Archived reports. To retrieve an archived risk profile report, select the Risk Profiler icon (two arrows) under the client s record.. All archived reports are shown. Select the date of the report to open it.. select Start new assessment to run the questionnaire again. 5

13 The Retirement Income Explorer tool is compatible with the following internet browsers: Internet Explorer version 8 and above, Chrome, Firefox, Safari and Opera. For more information about the tool, the following support documents are available: Questions and Answers Retirement Income Explorer Due Diligence document Retirement Income Explorer Quick View user guide Retirement Income Explorer Full View Getting Started user guide Retirement Income Explorer Full View user guide (detailed version) If you require any further training or assistance with the tool, please contact your E-Business Specialist or Old Mutual Wealth consultant, or call our Customer Contact Centre on or ask@omwealth.com Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Old Mutual Wealth is the trading name of Old Mutual Wealth Limited which provides an Individual Savings Account (ISA) and Collective Investment Account (CIA) and Old Mutual Wealth Life & Pensions Limited which provides a Collective Retirement Account (CRA) and Collective Investment Bond (CIB). Old Mutual Wealth Life Assurance Limited, Old Mutual Wealth Limited and Old Mutual Wealth Life & Pensions Limited are registered in England & Wales under numbers 69, and 464 respectively. Registered Office at Old Mutual House, Portland Terrace, Southampton SO4 7EJ, United Kingdom. Old Mutual Wealth Life Assurance Limited and Old Mutual Wealth Life & Pensions Limited are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Their Financial Services register numbers are 046 and respectively. Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority with register number 6 Old Mutual Global Investors is a trading name for Old Mutual Global Investors (UK) Limited and Old Mutual Investment Management Limited both of which are authorised and regulated by the Financial Conduct Authority. Their Financial Services register numbers are 7847 and 0854 respectively. Old Mutual Global Investors is registered in England & Wales under number and its registered office is Lambeth Hill London EC4P 4WR. Old Mutual Investment Management is registered in England & Wales under number 4787 and its registered office at Millennium Bridge House, Lambeth Hill, London, EC4V 4AJ. VAT number for all above companies is Old Mutual International (Guernsey) Limited is regulated by the Guernsey Financial Services Commission and is licensed to write long-term business under the Insurance Business (Bailiwick of Guernsey) Law 00. Registered number 44. Registered Office at Albert House, South Esplanade, St Peter Port, Guernsey GY AW, Channel Islands. SK666/5-09/August 05