Collective Retirement account. Phased drawdown illustration user guide. For UK Financial Advisers only

Transcription

1 Collective Retirement account Phased drawdown illustration user guide For UK Financial Advisers only

2 Contents. Your advice. Contribution details 3. Fund selection 4. Application options 5. Reveiw summary. Contents. Important notes 3. Client details (starting from the homepage) 4. client details (create a new client record/find an existing client record) 5. Client details (select client record) 6. Starting the illustration process 7. Choosing an Investment Range 8. Selecting the product 9. Your advice 0. Contribution details (contribution type). Contribution details (uncrystallised transfers). Contribution details (crystallised transfers) 3. contribution details (benefit crystallisation event and adviser initial fees) 4. Fund selection 5. Fund selection (search by fund/portfolio) 6. Fund selection (percentage to be invested) 7. Fund selection (phasing or rebalancing) 8. Illustration options 9. Illustration options (pension details) 0. Illustration options (adviser fees). Illustration options (select income basis). Illustration options (profiled income) 3. Illustration options (income review) 4. Illustration options (review summary)

3 IMPORTANT NOTES This guide explains how to obtain a phased drawdown illustration for new business only. We do not have an automatic process to facilitate phased drawdown, so the illustration cannot be converted to an application. Each crystallisation to top-up income in the future must be processed separately, by submitting a Benefit Crystallisation Event form. This form is available on our Literature Library at You can request a phased drawdown illustration for an existing Collective Retirement Account from us by , at ask@omwealth.com. Alternatively you can obtain an indicative illustration for an existing Collective Retirement Account through the new business illustration route by inputting the current value of the account as a new transfer into the existing fund choice.

4 client details (starting from the homepage). Select the Clients tab. 3

5 Client details (create a new client record/ find an existing client record). create a new client record.. Or search for their name. 4

6 Client details (select client record). Select the client s record to access their details. 5

7 Starting the illustration process. Select Illustration in the client actions bar. Tip: Draft illustrations you have started can be retrieved from the Latest activity tab on this page. 6

8 Choose an investment range. Select the investment range for the application.. Select Proceed. Tip: More information on the SelfSelect and WealthSelect investment ranges is available on our adviser website: 7

9 Selecting the product. Select the Collective Retirement Account..Then Next. 8

10 Your advice. enter details of the advice given for the transaction.. Select the Go to contribution details button. Tip: From this point onwards, your illustration will be saved each time you move to the next step in the process. You can retrieve illustrations you have started from the Latest activity tab in your client s record. 9

11 Contribution details (contribution type). to enter one or more payment type, expand the section by selecting the + icon, or Expand all sections (). The following two pages of this guide explain how to save uncrystallised and crystallised transfers. Note: Regular contributions cannot be included on a phased drawdown illustration. Flexible income withdrawals can only be selected later in the process if a fully crystallised transfer is included and no regular or lump sum contributions are saved. 0

12 Contribution details (uncrystallised transfers). enter details of the uncrystallised transfer.. Select the Save button. You can return to this section multiple times if you have more than one transfer to enter.

13 Contribution details (crystallised transfers). enter details of the crystallised transfer.. confirm the current drawdown basis. 3. Select the Save button. You can return to this section multiple times if you have more than one transfer to enter. 3

14 Contribution details (benefit crystallisation event and adviser initial fees). Select Illustrate phased drawdown.. Select the initial fee basis for the contributions captured. 3. Select the Go to fund selection button to proceed. Tip: Throughout the process, you can go back to the previous page or on to the next section using the Back and Go to buttons. 3 3

15 Fund selection. expand the funds section to view it using the Select funds option. Tip: The details you have entered on each previous step are summarised on the right of the screen. To view details of the other steps you have completed, select the section title (). 4

16 Fund selection (search by fund/portfolio). choose either to search for a Managed Portfolio, one of your own portfolios, or search by funds.. Start typing the name of the portfolio/fund, or select the View all funds option. 3. as you type in the name of the portfolio or fund, matching results will be shown in a list below for you to select from. 4. Select the fund/portfolio and the Add button. 3 4 Note: Only funds/portfolios relevant to the investment range and product selected will be returned by your search. 5

17 Fund selection (percentage to be invested). the fund or portfolio you add will be entered into the table below.. enter the percentage to be invested into each fund, or select Split equally. 3. to remove a fund, tick the box next to it and select Remove. 4. When finished, select Save

18 Fund selection (phasing or rebalancing). add phased investment or automatic rebalancing to the illustration if required. Only one of these options can be chosen.. Select Go to Illustration Options when finished. 7

19 Illustration options. the next stage is broken down into sections.. Select the title of each one to view individually, or select Expand all sections to view all. 8

20 Illustration options (phasing or rebalancing) This section will display if you have entered a crystallised transfer.. confirm the drawdown basis of the crystallised transfer either capped or flexi-access.. If capped, enter the next review dates. 3. If capped, enter the GAD basis amount and the total withdrawals received in the current pension year. 4. Select the deduction method for withdrawals (proportionately across all funds, largest fund or client specified funds). 5. If you have chosen Client specified funds, select the funds that the deductions will be taken from using the tick boxes. 6. go to the Adviser fees section

21 Illustration options (adviser fees). add details of any servicing fee.. Select the deduction preference for the Product Charge (formerly known as the Platform Charge) and any servicing fee selected. 3. If you have chosen Client specified funds, select the funds that the deductions will be taken from using the tick boxes. 4. Select the fund switch fee basis. 5. go to the Illustration options section

22 Illustration options (Select income basis). If your client has any other accounts on our platform, you can add their value to adjust the Product Charge (formerly known as the Platform Charge). Select the annual income amount required initially. 3. choose whether to keep future income on a level basis, escalate at a fixed percentage, or to enter different amounts for the next 0 years (profiled income). Profiled income is shown on the next page. 4. Select the frequency of withdrawals monthly or annually. 5. enter the tax rate the client will pay on withdrawals. 6. confirm whether the income will be funded by tax-free cash (TFC) first, or a combination of TFC and income. 7. confirm if you would like to illustrate an adviser fee to be taken on crystallisation, and if this should be taken on first or every crystallisation, or annually. Continued on next page Notes: Income can be escalated from 0.5% to 5%, in 0.5% integers. 300 is the minimum amount of income we can pay. We crystallise a minimum of,000. Adviser fee on crystallisation If selected, enter the fee as a monetary amount. This will be on an ad hoc fee basis, and the illustration will assume it is taken proportionally across all funds. In practice, you would request each ad hoc fee separately and this can be deducted in a variety of ways. Notes on funding income 5 7 Taking income from available tax-free cash first ensures that the client s income in early years suffers no income tax liability. 3 4 Taking a combination of tax-free cash and maximum related withdrawals to make up the total annual income amount will leave the maximum uncrystallised fund available, reducing the potential tax liability on remaining pension savings in the event that the client dies prior to age 75. 6

23 Illustration options (profiled income). If you have selected profiled income, enter the annual income required for the next 0 years. Please enter gross annual income amounts. You can enter 0.00 if income is not required for certain years.

24 Illustration options (income review). confirm if your client is expected to purchase an annuity. If yes, you will be asked for the expected annuity date and escalation basis.. Select if you wish to include critical yield calculations on the illustration. If yes, you will also be asked if you want to compare an alternative annuity quote. 3. Select Get illustration. Your illustration will display in a new window, and can be printed or saved using the options on your browser. 4. Select Go to review summary to save the details captured on this page and review the information you have entered for the illustration. Notes on critical yield calculations A critical yield calculation will indicate the fund growth needed to match the level of income your client might otherwise get from purchasing an annuity, or a specified level of income. The illustration may provide a type A and B critical yield. Type A will show the growth rate sufficient to provide and maintain a level of income you might get from purchasing an annuity. Type B will show the growth rate necessary to provide and maintain a selected level of income. An illustration will not always provide a type B critical yield it depends on the type and amount of income taken

25 Illustration options (review summary). the details you have entered are displayed. Select the Edit button to go back to a section and amend it.. Supporting documents you may wish to give to your client are on the right of the screen. 3. Select Save and exit when finished 3 Tip: The illustration will be saved in the client s record, under the latest activity tab. 4

26 If you require any further training or assistance with the platform, 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 Limited and Old Mutual Wealth Life & Pensions Limited are registered in England and Wales under numbers and respectively. Registered Office at Old Mutual House, Portland Terrace, Southampton SO4 7EJ, United Kingdom. Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority. Old Mutual Wealth Life & Pensions Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Their Financial Services register numbers are and respectively. VAT number PDF9546/6-0054/January 06