Pension Review Questionnaire

Transcription

1 Units 4 6 Burnt House Farm Business Park Bedlam Lane Smarden Kent TN27 8PG T: E: info@hdclimited.com W: Introducer Name Introducer Firm Date Completed Client Name Pension Review Questionnaire Client Address Client Address Pensions to be Reviewed Advice Type (please circle one option) Transfer (no benefits being taken at this time) Drawdown (over age 55 & wishes to draw cash/income in the next year) Cash/Income Required N/A Reasons for Transfer (What is the client aiming to achieve?) Other Comments (Any other relevant information) Page 1 of 32 Heather Dunne trading as HDIFA No is an Appointed Representative of Financial Solutions Midhurst Limited, Authorised & Regulated by the Financial Conduct Authority No HDC 20 th July 2015

2 Document Checklist (Always required) TOB Attached (Always Required please circle) Initial Letter (Always Required please circle) Date ISAR Discussed (Always Required) Yes Yes No No Passport Yes No ID Attached (Always Required, please circle options) Driving Licence Yes No Utility Bill dated in last 3 months Yes No New Plan Provider (If transferring to a new plan) Research Docs Attached (Always required for new plan, but not needed for existing plan) Reason Why Wording Att (Always required for new plan, but not needed for existing plan) Yes Yes No No Existing Plan Provider (If adding to an existing plan) Policy Number (Existing plan only) Change of Agency Attached (Always required for existing plan) (please circle one option) Yes No Page 2 of 32

3 Document Checklist Continued (Always required) Total Transfer Value Total Remuneration % Adviser Remuneration HDIFA (standard terms apply) Introducer: % HDIFA s fee structure are as follows: Transfer Value Fee On the first 150,000 (note minimum of 100,000) 2% On the next 350,000 (i.e. 150,000 to 500,000) 1% On the next 500,000 (i.e. 500,000 to 1m) 0.5% On the remainder (i.e. 1m plus) 0.25% Please note there is a minimum fee of 2,000 in all cases. Page 3 of 32

4 Section 1 Personal Circumstances The following questions are intended to provide us with the information necessary for our review of your pension benefits. Please ask your adviser if you need assistance with any of the questions. We would encourage you to add any extra thoughts, in your own words, on the Notes Page provided at the end of the document and to the various Comment boxes throughout. Please ensure you complete all boxes or write not disclosed or not applicable as appropriate. 1a: Basic Data We will assume that you are UK Domicile and Resident; if this is incorrect, please inform us. Title: Surname: First Name(s): Date of Birth: NI Number: Marital Status: Married Civil Partnership Single Non Married Partner Divorced Other: Date of Marriage: Date of Divorce: Previous Surname: State of Health: Smoker? Yes No How do you think your health will change in the coming years? Improve Continue Deteriorate Other: Page 4 of 32

5 1b: Spouse s / Partner s Data Title: Surname: First Name(s): Date of Birth: NI Number: Previous Surname: State of Health: Smoker? Yes No How do you think your Spouse/Partner s health will change in the coming years? Improve Continue Deteriorate Other: 1c: Children & Dependants Please complete the following regarding your children: Name Age Full Time Education? Living with you? Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Any other Financial Dependants: Page 5 of 32

6 1d: Wills & Inheritances Have you made a will? Yes No When was it made? Last reviewed? Main terms / provisions: Expected Inheritances: 1e: Current Employment Employment Status: Employed Self Employed Unemployed Retired Controlling Director Other: Current Occupation & Employer / Business Name: Date Started Employment / Trading: Annual Salary: Bonus / Dividends: Do you expect your employment status to change in the future? Yes No Do you expect any changes in your salary and/or bonuses? Yes No Faster than inflation How do you anticipate your earnings will increase in the future? In line with inflation Slower than inflation Page 6 of 32

7 1f: Spouse s / Partner s Employment Employment Status: Employed Self Employed Unemployed Retired Controlling Director Other: Current Occupation & Employer / Business Name: Date Started Employment / Trading: Annual Salary: Bonus / Dividends: 1g: Other Income Do you or your Spouse / Partner have any other income? Yes No If yes, please provide details: Type You (annually) Spouse/Partner (annually) Dividends Bank Interest Buy to Let Rental, Lodgers etc. Consultancy/other earnings Separate self employed earnings Pensions (including state) Other Total Page 7 of 32

8 1h: Joint Income and Expenditure Net Monthly Income: Your Salary p.m. Please describe any anticipated changes or other relevant factors: Spouse/Partner s Salary p.m. Bonuses p.m. Dividends p.m. Investment Income p.m. Other Earnings p.m. Total Net Income p.m. Monthly Expenditure: Mortgage/Rent p.m. Loans/Credit Cards/HP p.m. Insurance Premiums p.m. Utilities/Council Tax p.m. School/College/University p.m. Car/Travel p.m. Food & Clothing p.m. Other p.m. Total Expenditure p.m. Income less Expenditure p.m. Approximate disposable income p.m. Do you have an Emergency Fund? If so, how much? Page 8 of 32

9 1i: Your Retirement Plans At what age would you ideally like to retire? Now Other: At what age do you think you realistically will be able to retire? Now Other: At what age do you expect to draw your Tax Free Cash? Now Other: Please state any capital expenditure which you expect to meet using your Tax Free Cash: Description: When: Amount: Will you begin to draw a Pension Income when you take the Tax Free Cash? Yes No If No, at what age do you expect to begin drawing your Pension Income? Now Other: Page 9 of 32

10 Section 2 Pension Provision We need to be aware of all of your pension plans, even if they are not being reviewed at this time. Please provide as much detail as possible and add any additional comments on the Notes Page provided. 2a: Current Pensions Employed: Does your employer provide a pension scheme? Yes No If so, have you joined that scheme? Yes No Self Employed: Do you contribute to a pension? Yes No If yes, please provide details: Type: Provider: Policy Number: Current Value: Death Benefits: Date Joined Plan: Your Contributions: Employer Contributions: 2b: Spouse s / Partner s Pensions Please provide details of all your Spouse/Partner s pension provision: Scheme/Provider Name: Scheme/Plan Type: Current/Transfer Value: Scheme/Provider Name: Scheme/Plan Type: Current/Transfer Value: Scheme/Provider Name: Scheme/Plan Type: Current/Transfer Value: Page 10 of 32

11 2c: Previous Occupational Schemes Please provide details of your previous Occupational Schemes, and indicate which are to be included in our review, even if you have already received an Initial Suitability Assessment Report. Please attach a copy of the most recent information that you have received from each scheme. Review? Scheme Name: Yes No Employment From: To: Salary at leaving: Transfer Value: Additional Information: Review? Scheme Name: Yes No Employment From: To: Salary at leaving: Transfer Value: Additional Information: Review? Scheme Name: Yes No Employment From: To: Salary at leaving: Transfer Value: Additional Information: Page 11 of 32

12 2d: Other Pension Plans i.e. Personal Pension, Section 32 etc. Please provide details of your other pension plans and indicate which are to be included in our review, even if you have already received an Initial Suitability Assessment Report. Please attach a copy of the most recent information that you have received from each provider. Review? Provider (1): Yes No Plan Number: Current Value: Brief Details: Review? Provider (2): Yes No Plan Number: Current Value: Brief Details: Review? Provider (3): Yes No Plan Number: Current Value: Brief Details: Review? Provider (4): Yes No Plan Number: Current Value: Brief Details: Page 12 of 32

13 Section 3 Retirement Planning The following questions are designed to help us understand your wishes, desires, requirements and expectations in relation to the benefits under review. Please complete each question, picking the answers which most closely resemble your feelings, adding any additional comments in the spaces provided or on the Notes Page at the end of the questionnaire. 3a: Percentage of Benefits How important to your overall retirement planning are the pension benefits under discussion? Please tick as many as applicable. I have little in the way of other assets or pensions to fund my retirement The plans under review represent a major proportion of my overall retirement fund The plans under review represent a significant proportion of my overall retirement fund The plans under review represent an insignificant part of my overall retirement fund I have other pensions to be taken into account I have other assets which will support me in retirement I am too young to decide, as I expect to accrue further benefits before I retire Page 13 of 32

14 3b: Death Benefits Before Retirement On death before retirement, pension schemes can provide death benefits in the form of a lump sum or an ongoing pension. The majority of lump sum death benefits may be paid tax free to your nominated beneficiaries, who need not be financially dependent on you. Please add any additional thoughts to the Comments boxes or the Notes Page provided. Which type of benefit would you prefer to provide for your dependants/nominated beneficiaries? Lump Sum: Pension: Which of the following statements most accurately reflects your views regarding death benefits? I have no dependants, so a lump sum is not important My dependants will receive significant sums upon my death from other sources and so extra death benefits are not an absolute priority to me I have very little life cover and my dependants could do with extra sums, if they can be made available I wish to increase death benefits if this does not reduce my own potential retirement benefits Increasing death benefits is of paramount importance to me and outweighs providing for my own retirement needs I have health concerns which preclude me from easily arranging life cover and so increasing death benefits is extremely important to me I do not expect to need these benefits in retirement and wish to leave them to my nominated beneficiaries Page 14 of 32

15 3c: Spouse s and Dependant Children s Pensions Schemes frequently provide dependant s pensions, which are payable after your death, both before and after retirement. Any such pension benefit is taxable and can only be paid to someone that the HMRC define as financially dependent or interdependent. Please add any additional comments to the Notes Page. Which of the following statements most accurately reflects your views regarding dependant s pensions? I wish to increase the benefits payable to me as I do not have a spouse or other dependants I would prefer to increase the pension available to me, as my spouse/partner has sufficient provisions in their own right I would prefer to increase my prospective pension as I do not expect to be married or to have any dependants when I retire I would like the flexibility, at retirement, to control the way benefits are paid. I would like to make this decision depending on my circumstances at that time The spouse s and dependant s benefits under my previous employer s scheme are most important to me and I feel these should be retained or matched 3d: Tax Free Cash Sums at Retirement Pension Legislation allows you to draw part of your benefits as a Tax Free Cash Sum (correctly termed Pension Commencement Lump Sum) and the remainder as a taxable pension. Which of the following statements most accurately reflects your views regarding Tax Free Cash? I require the maximum possible Tax Free Cash at retirement A higher Tax Free Cash lump sum would be tax efficient; this is important to me A higher Tax Free Cash lump sum would be nice; this is not a priority for me I feel that I am too young to decide I would prefer to increase income as I have no need for a Tax Free Cash lump sum at retirement Page 15 of 32

16 3e: Intended Retirement Age This section considers early retirement. Pension Legislation allows you to draw benefits from age 55 and you indicated earlier the age at which you hope to retire. Which of the following statements most accurately reflects your views in relation to when you intend to retire? I anticipate early retirement and I am happy to accept a lower pension I may wish to draw on part of my pension funds at an early date I do not think that I will be able to afford to retire early, especially if my benefits are reduced. I am prepared to defer drawing them until later I do not think that I will be able to afford to retire early. However, I would like to keep my options open in case my circumstances change in the future My health is bad, therefore getting the best possible terms is important to me I do not expect to draw on my pension funds 3f: Income Requirements in Retirement Pension Legislation allows you to draw part or all of your benefits without retiring, though these options may not be available via your current scheme. We need to consider how important this flexibility is to you. Which of the following statements most accurately reflects your views regarding income in retirement? I require my income to increase each year in retirement I require the maximum possible income throughout my retirement I would like the opportunity to vary my income in retirement if the need arises I expect changes in my other income, which will affect the amounts I need to take Page 16 of 32

17 3g: Security (Defined Benefit schemes only) Defined Benefit pensions are held under trust and are separate from the employer. However, the continued financial health of the pension scheme is to some extent reliant on the financial security of the sponsoring employer, which has an obligation to meet any funding deficit. Which of the following statements most accurately reflects your views with regard to the security of your existing benefits? I have no reason to question the long term security of my pension fund I am a little concerned about the long term security of my pension and retirement income, but other aspects are more important to me I am concerned about the long term security of my pension fund and subsequent retirement income I am very concerned about the security of my pension and wish to take action to ensure it is secure I wish to take action to ensure that my pension fund is removed from the control of my previous employer 3h: Pension Protection Fund (Defined Benefit schemes only) The Pension Protection Fund (PPF) offers a minimum level of benefits and comes into effect if a Defined Benefit pension scheme is in deficit and the Principal Employer suffers an Insolvency Event. Which of the following statements reflects your views regarding the PPF? The security offered by the PPF is extremely important to me I value the security offered by the PPF I appreciate the security offered by the PPF but would prefer to control my retirement fund I do not value the guarantee provided by the PPF Control of my benefits is of paramount importance Page 17 of 32

18 3i: Investment Performance (Defined Contribution/Money Purchase schemes only) Money Purchase schemes are held under trust and are separate from the employer. The actual benefits available at retirement will depend on the monies contributed and the investment return achieved, plus the annuity rates available when you draw benefits. Please add any additional comments below or to the Notes Page provided. Which of the following statements most accurately reflects your views in relation to investment performance and charges? I am very disappointed with the investment performance achieved within the current scheme and feel this could be improved I am satisfied with the level of investment performance which has been achieved to date, but I am concerned for the future I am wholly satisfied with the investment performance achieved to date and have no concerns for the future I am very disappointed with the returns achieved by the scheme in recent years and would prefer to move the funds to a plan in which I can have more involvement in the investment decisions I am reasonably happy with the investment returns and the level of charges being deducted within the current scheme, although I do feel this can be matched elsewhere I am very concerned about the level of charges being deducted within the current plan and feel these can be bettered elsewhere I am concerned at the level of charges being deducted within the current scheme I am not concerned about the level of charges being deducted within the current scheme Page 18 of 32

19 Section 4 Drawing Benefits Do you intend to take any benefits within the next twelve months? Yes No If Yes, please answer these additional questions. If No, skip to Section 5 If you wish to take any benefits within the next 12 months, we have to consider what the scheme could provide, as against the alternatives. Please answer the following to assist us with this aspect and add any additional comments in the boxes provided or the Notes Page. 4a: Tax Free Cash Do you intend to take Tax Free Cash (TFC) in the next twelve months? Yes No Please consider the following questions and add your responses in the box provided: What amount of TFC do you require? When do you require that TFC? What do you intend to use your TFC for? How much TFC will you use for this purpose? What will you do with the excess TFC? Will you require more TFC at some point in the future? If so, how much and when? At what stage will you require a Pension Income? How much income will you need and will this alter over time? Page 19 of 32

20 4b: Your Imminent Retirement Which of the following statements most accurately reflects your views regarding your imminent retirement? I am already partially retired and understand that drawing my benefits earlier will produce a lower pension I anticipate full retirement soon and I am happy to accept a lower pension I have no intention of retiring just yet, but do wish to draw some of my benefits now I may wish to draw on a further part of my pension funds before I fully retire, leaving some in abeyance until I do formally retire My health is bad therefore getting the best possible terms is important to me I do not expect to draw on my pension funds again 4c: Income Requirements Please consider the following questions, and add your responses in the box provided: How much income will you initially require? How long will you need that level of income? At that stage, will your income requirement increase or decrease? Is a fixed guaranteed income important to you? Would you prefer a less secure adjustable income? Will you want to maximise the income available immediately or preserve it for the longer term? Will you have other sources of income in retirement? Are you willing to accept that your income may drop? Page 20 of 32

21 4d: Retirement Income Requirements When you decide to draw benefits, you have choices regarding the format of those benefits. The next few questions will help us judge your needs and preferences in this respect. Which type of pension income would you prefer? Level: (same amount each year) Increasing: (inflation proof) Which of the following statements reflect your views regarding pension income? It is essential I have an income I can control I would like to have a flexible income, which I can alter I would prefer to have a higher initial income I am not concerned about guarantees I am willing to accept a fluctuating income Inflation proofing my income is important to me Guaranteed inflation proofed income is vital to me Page 21 of 32

22 4e: Annuity Health Details In order to obtain an annuity quote (required for our Retirement Planning Report), we need to ask a few questions regarding your state of health. Height: Weight: Alcohol consumption: Units p/w Waist size: Are you taking medication for high blood pressure? Yes No Are you taking medication for high cholesterol? Yes No Are you taking medication for any other serious medical conditions? Yes No 4f: Spouse s Health Details If you are married, the annuity will include an ongoing dependents pension. Please therefore provide the same information regarding your spouse s state of health. Height: Weight: Alcohol consumption: Units p/w Waist size: Are they taking medication for high blood pressure? Yes No Are they taking medication for high cholesterol? Yes No Are they taking medication for any other serious medical conditions? Yes No Page 22 of 32

23 Section 5 Transfer Motivation The usual reason for moving pension fund monies is to improve the final retirement benefits. This might be in terms of the way they are provided, or in respect of the actual level of retirement income. However, some individuals have more personal reasons for considering a transfer. If that is the case, please add details in the comments box below or on the Notes Page provided. Please tick the statements which reflect your reasons for considering a transfer (as many as applicable): Improving my retirement and death benefits I am considering using my pension benefits in connection with a business venture I wish to make a specific investment, which is not possible via my current plan I am disappointed with the level of service and ease of attainment of information from the current scheme administrators I am over age 55 and wish to draw my Tax Free Cash immediately, without taking a pension income (if so, please ensure you have completed Section 4) I would like to consolidate my pension benefits I would prefer to have control of my pension benefits I wish to break all ties with my ex employer I want to be able to draw my income as & when required I do not want to buy an annuity Page 23 of 32

24 Section 6 Your Attitude to Risk (in relation to a Pension Transfer) The following questions are intended to help you think about your Attitude to Risk when it comes to considering a transfer of pension benefits. A crucial aspect of our assessment will be the balance between the risks and the potential benefits within each of the alternatives for your retirement plans. 6a: When it comes to financial decisions, how would you describe yourself? No understanding or knowledge Very little understanding or knowledge About as much understanding as the next person A fair degree of understanding or knowledge A high level of understanding or knowledge 6b: Which statement best describes your current financial situation? I am completely debt free I have no mortgage but have a few other obligations like credit card payments etc. I have a mortgage but no other debts that concern me I have a mortgage and some short term obligations I have a lot of long term obligations 6c: What are your main retirement goals? Immediate benefits i.e. drawing Tax Free Cash and/or Pension Income now Draw benefits in 5 7 years Draw benefits in 8 10 years No requirement for benefits for at least 10 years Page 24 of 32

25 6d: How would you compare yourself to others in your willingness to take financial risks? Very concerned Slightly concerned A little uneasy Confident Very confident 6e: How would you rate the degree of risk that you are willing to take in your financial affairs? Extremely low risk Low risk Moderate risk High risk Extremely high risk 6f: What degree of risk would you say you have taken with your past financial decisions? Very small Small Moderate Large Very large Page 25 of 32

26 6g: What degree of risk do you wish to take with your future financial decisions? A very small amount of risk with a very small potential return A small amount of risk with a small potential return A moderate amount of risk with a moderate potential return A large amount of risk with a large potential return A very large amount of risk with a very large potential return 6h: What is more important for you in the context of your retirement planning: risk or potential return? I always focus on the risk rather than the potential return I usually focus on the risk rather than the potential return I focus equally on the risk and the potential return I usually focus on the potential return rather than the risk I always focus on the potential return rather than the risk 6i: Volatility means the variation in investment values i.e. the rises and falls. It is generally accepted that higher volatility will usually result in higher investment return. Please state what level of volatility you are prepared to accept? No volatility; not prepared to risk any fall in value Low volatility; aiming for more modest gains Below average volatility; aiming for steady long term gains Average volatility; aiming for good long term gains Above average volatility; aiming for greater long term gains High volatility; aiming for the highest gains Page 26 of 32

27 6j: Please confirm your views in relation to the following statement: You are more concerned that your pension fund grows faster than inflation, than you are about returns over any one year period Strongly agree Agree Disagree Strongly disagree 6k: Please confirm your views in relation to the following statement: I am prepared to forego potentially large gains if it means that the value of my retirement fund is secure Strongly agree Agree Disagree Strongly disagree 6l: Please confirm your views in relation to the following statement: I can tolerate the risk of large losses in my pension fund in order to increase the potential returns Strongly agree Agree Disagree Strongly disagree Page 27 of 32

28 6m: If you were advised that your current fund and future savings are not sufficient to meet your retirement goals, what action would you take? Take more risk with all of the money to try and improve returns Take more risk with half of the money and increase your savings Increase savings sufficiently to achieve your goals Amend your goals and make no change to the investment risk or savings level 6n: If you had a portfolio of investments within your pension fund which dropped in value over a one year period, what loss would you be uncomfortable with? More than 5% More than 10% More than 15% More than 20% 6o: Suppose one year ago your pension fund was 100,000. Today, you have checked the value and it is now worth 87,000. How would you feel? Panic I d want my adviser to invest the monies into a Cash fund Nervous I d want my adviser to invest part of the fund into less volatile assets Patient I d sit tight, expecting the overall fund to recover Positive If I had any more money, I d invest it in the same assets 6p: Please confirm your views in relation to the following statement: I am not concerned about falls in value as I expect to recover any capital loss over the longer term. Strongly agree Agree Disagree Strongly disagree Page 28 of 32

29 6q: At the beginning of the year, your pension pot is 100,000. The chart and options below show the performance of four possible funds. Each bar gives a range of possible values at the end of the same year. Which option would you feel most comfortable with? 150, , , , , ,000 90,000 80,000 70,000 Option A Option B Option C Option D Option A: It could be worth anywhere between 93,000 and 113,000 Option B: It could be worth anywhere between 85,000 and 125,000 Option C: It could be worth anywhere between 77,000 and 137,000 Option D: It could be worth anywhere between 69,000 and 149,000 Page 29 of 32

30 6r. Which of the following statements most accurately summarises your attitude to risk? Adventurous Risk I am an adventurous, even speculative, investor who requires exposure to extreme markets or direct equity investment for a range of investment periods. I accept that I may experience dramatic fluctuations in the value of my pension funds, together with the resulting Tax Free Cash and Income. High Risk I am an investor with previous experience of equity markets or I am happy to accept a high degree of risk in exchange for the possibility of a higher pension in retirement. I accept that I may experience some marked fluctuations in the value of my funds, together with the resulting Tax Free Cash and Income. Balanced Risk I am a balanced investor, who is not averse to some exposure to the equity markets. I am prepared to see some variations in returns in the shorter term, but would wish to be reasonably confident of longer term growth. I will be aiming for pension growth to at least outperform inflation. Low Risk I am a conservative investor who requires limited exposure to the equity market. I am willing to accept growth in line with inflation. Cautious Risk I am a cautious investor who requires little risk to their pension capital. I seek stability and conservative growth. I consider security to be generally more important than increasing my income. Ethical I am an Ethical investor and my main concern is the suitability of the underlying investments as against the actual returns and investment performance achieved. Page 30 of 32

31 Section 7 Your Priorities Finally, please indicate which of the following aspects is of the most importance to you. Please number the alternatives 1 to being most relevant to you and 10 least important in your view. Please number 1 10 Priority Increase my pension Obtain more investment control Improve the security of my pension fund Larger lump sum Death Benefits before retirement Larger lump sum Death Benefits after retirement Maximise Tax Free Cash sum at retirement Ability to afford to retire early Flexibility & control of income in retirement Draw Tax Free Cash immediately/once you reach age 55, without a pension income Deferring or avoiding purchasing an annuity If you would like to expand on any of the questions, or feel that there are further points you wish to make, please use the Notes page provided. I confirm that the information, detailed in this Pension Review Questionnaire, together with any other details I have provided, is to be the basis on which you advise me. Signature Date Page 31 of 32

32 Notes Page Please clearly state which part of the questionnaire your comments relate to Page 32 of 32