Defined Benefit Pension Transfers – Full webinar

Defined Benefit Pension Transfers – Full webinar

In this online version of our popular live webinar, Claire Evans demonstrates how firms can use Voyant Adviser to run Appropriate Pension Transfer Analysis for clients considering transferring their defined benefit schemes to money purchase arrangements.

Table of Contents:

00:23 – Introducing our clients James and Gemma Henderson
00:41 – Plan 1. The Base Plan – Keep the final salary, leave DB pension in place
00:56 – Plan Preferences – Setting the default future escalation rate for the Lifetime Allowance, Nil Rate Band, and Main Residence Nil Rate Band Extension Threshold
02:01 – Plan Preferences – Setting default assumptions for the Major Market Loss simulation
02:47 – Entering and configuring the final salary scheme
03:33 – Setting the Normal Retirement Age for the DB scheme and the Actuarial Reduction applied to benefits when taken before NRA
03:44 – Defaults and Events – How to schedule the start of future payments from a final salary
04:01 – Lump sum options for final salaries
04:14 – Death in deferment benefits for final salary schemes
04:30 – Overview – Reviewing what we know, what we’ve entered about our clients
05:00 – Protection Policies and Expenses – Suggestions for modeling early mortality scenarios
05:33 – Taxes – Where to account for Lifetime Allowance protection
06:03 – Let’s See – Reviewing the results of the Base Plan in the charts
06:07 – Interpreting the Cash Flow chart
06:53 – The Liquid Assets chart – Track the growth and drawdown of savings, investments, and pensions
08:04 – Taxes – Flagging Lifetime Allowance overages
08:29 – The Taxes details – Annual taxation worksheet and cumulative tax totals by client
09:05 – Plan 2. Scenario – What if they keep the final salary and James dies early
09:10 – Use the drag-and-drop Mortality event to model early mortality
10:02 – Interpreting the results of the scenario in the Cash Flow chart
10:18 – Compare results from the Early Mortality scenario with the Base Plan
10:49 – Plan 3. Transfer DB and Take Matching Retirement Income – Transfer the final salary CETV into a money purchase
11:30 – How to schedule a matching income from a money purchase
11:54 – Interpreting the results of the scenario in the Let’s See charts
12:00 – Why is there a spike at age 75? The BCE 5A check
12:31 – Simulation – Run an Investment Return Rate Need Analysis to find the baseline (net of fees) rate of return needed to generate a retirement income matching the DB benefit
13:12 – Plan 4. Transfer DB scenario with other assets included
14:20 – Plan 5. Scenario, Lifestyle Plan and Investment Recommendation – Transfer DB, retire early, mitigate Lifetime Allowance overage
15:02 – Lifetime Allowance Tax Mitigation – How to schedule the withdrawal of all tax free cash from a Money Purchase upfront at Retirement
15:39 – Planned Withdrawals – How to set a withdrawal schedule (future retirement income) from a drawdown pension
15:57 – Track planned withdrawals in the Cash Flow chart
16:03 – Planned Withdrawals – How to schedule future withdrawals (e.g. future retirement income) from investments
16:26 – Transfers – How to schedule the transfer (reinvestment) of tax free cash (and other lump sum inflows) into a particular investment
17:17 – Taxes – Comparing plans for tax efficiencies including the Lifetime Allowance tax and total cumulative tax per client
19:29 – Stress testing the DB transfer plan
19:44 – Plan 6. Early Mortality – Stress test the Lifestyle and Investment Recommendation plan (with DB transfer) for earlier than expected mortality
21:04 – Plan 7. Major Loss – Stress test the Lifestyle and Investment Recommendation plan (with DB transfer) for make loss
22:03 – The Assets by Type Chart – View the total asset position, including illiquid assets
22:22 – Support – Where to find help

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