Prismatic Wealth Final Salary Analysis Service

Final Salary/Defined Benefit Analysis Service Rising life expectancy and financial crisis, left many final salary pension schemes under-funded causing them to close and be replaced by defined contribution schemes.

The closure of many schemes and the introduction of pension freedom has led to many members considering the alternatives to drawing a pension via their employers’ scheme.

www.prismaticwealth.co.uk

Final Salary/Defined Benefit Analysis Service Why should you review your defined benefit pension?

Before the introduction of pension freedom, the general stance on final salary and defined benefit schemes was that they were the golden ticket to retirement, offering an attractive, fixed income for life with the investment risk borne by the employer.

However, the increase in transfer values along with pension flexibility has made it more appealing for many members to consider transferring their benefits. These higher values can reduce the investment risk required to achieve the same level of pension. Coupled with this are a number of other reasons to consider a transfer:

1 Control

2 Flexibility

3 Death Benefits

If you are concerned about the stability of your current or ex-employer, transferring your benefits ensures the assets are under your control, in funds which match your attitude to risk.

By transferring a defined benefit scheme, you have complete flexibility over when and how to draw income, which is a significant advantage to many. Benefits can be taken as early as 55 and tax free cash and income phased to utilise tax allowances.

Under defined benefit schemes, members are restricted by the scheme rules, which typically offer a percentage of the members’ pension to their spouse upon death. Whilst this is a valuable benefit a transfer allows the full fund value to be passed to beneficiaries on death.

Why do I need advice?

For any defined benefit transfers over ÂŁ30,000, it is a regulatory requirement to obtain financial advice.

Providers and schemes will not accept or pay a transfer without it being signed off by a qualified adviser.

Our Defined Benefit Analysis Service covers five stages:

1 Initial Meeting

2 Transfer Value Analysis Report

At the initial meeting, we will gather information about your personal and financial circumstances and your objectives.

Upon receiving all the information from the scheme, we produce a Transfer Value Analysis Report (TVAS). We have invested in the software to produce our own reports in house thus speeding up the whole process.

We ask you to complete our client questionnaire and risk profile questionnaire and bring along any paperwork you have. The initial meeting is at our cost and we will discuss how we can help and the costs associated with this before proceeding to the next stage.

www.prismaticwealth.co.uk

A TVAS is a regulatory requirement that must be produced if transferring a final salary or defined benefit scheme. It shows you the annual return or growth needed from the new scheme to match the benefits your scheme would have given you.

Final Salary/Defined Benefit Analysis Service

It can also show you the equivalent growth if you were looking to take benefits at a date other than the schemes normal retirement date as well as comparing benefits on death and if the scheme were to fall into the Pension Protection Fund, which is the compensation scheme for final salary and defined benefit arrangements.

We will advise you as to whether we feel the transfer value offered is appropriate based on the fixed income figures that your scheme will provide.

Gaining information from the scheme administrators can be a long and arduous process so this stage can be lengthy depending on their efficiency.

3 Results Once all of the information has been gathered and analysed, we are now in a position to sit down with you to discuss the results. We pride ourselves in our ability to explain in clear terms the options available based on your circumstances and what we believe is the right thing for you to do.

If transferring is the right thing to do, we will review your risk results to ensure they are appropriate and discuss a strategy that meets your objectives.

4 Report And Recommendation Our detailed recommendation report covers everything we have discussed and will allow you the time to review and understand our advice and raise any queries. If we are recommending a transfer of benefits, we will select an appropriate provider to receive your transfer, analysing charges, fund choice and administration.

www.prismaticwealth.co.uk

The results of your risk questionnaire will provide us with a risk score between 1-10. We will discuss in detail an investment strategy which will take into account your attitude to risk and future need for income and timescale.

When you are happy with our recommendation, we will then complete the necessary paperwork on your behalf and see the transfer through from beginning to end.

Alternatively, it may not be in your best interest to transfer, in which case our recommendation would be to leave your plan where it is.

5 Ongoing Service Once the transfer has gone through, our completion meeting ensures you are comfortable with everything. We cannot stop all the regulatory paperwork you receive but we can explain it and simplify what you need to keep.

As with most things though that is not the end as nothing stands still. Your circumstances may change, regulations are constantly changing and investments should also be reviewed.

As a Prismatic Wealth client, you will benefit from our Cash Flow Modelling forecast tool, whereby we can analyse different scenarios and the impact this will have on your plans.

Our ongoing service enables you to meet with your adviser at least annually to complete a full review meeting, whereby we review your circumstances and attitude to risk. Outside of your review meeting, your adviser and our support team are on hand to provide any help or advice you need. Behind the scenes, we are continually monitoring and reviewing your investment strategy to ensure the funds are performing as they should be. You will also receive our regular communications, including our quarterly Wealth magazine.

Final Salary/Defined Benefit Analysis Service Defined Benefit Pension Schemes We have completed transfers or advised on the following defined benefit pension schemes: • 3i Group

• Global SantaFe North Sea

• Rolls Royce

• AECOM Ltd

• Hoare’s Bank Pension Scheme

• Amec Final Salary

• ICI Pension

• Royal Bank of Scotland Group Pension Fund

• AMEC Foster Wheeler

• Interserve

• Royal Mail

• AON Hewitt (Chevron UK Pension Scheme)

• ITB Pension Funds

• Saint Gobain - Building Distribution

• Arriva Passenger Pension Plan

• Jones Lang LaSalle Retirement Benefit Scheme

• Audit Commission

• Lambeth (LGPS)

• Barclays 1964 Pension Scheme

• Local Government Pension Scheme (LGPS)

• Barclays Bank UK Retirement Fund

• Samsung Elecronics Manufacturing UK Pension • Santander (UK) Group Pension Scheme • Scottish & Newcastle

• BASF Pension Scheme

• Local Government Pension Scheme (Teesside Pension)

• BBC

• Lucite International

• BP Pension Scheme

• Mowlem Pension Scheme

• British Steel Pension Scheme

• Northampton Pension Fund

• BT Pension Scheme

• Northumberland Council

• CAAPS

• NSK

• Cleveland Potash Ltd

• PepsiCo UK Pension

• Conde Nast Publications Ltd

• Perenco (Capita)

• Eletrolux

• Pipeline

• Exxon Mobil

• Prudential Staff Pension Scheme

• Federal Express UK Pension Scheme

• RBC

• Universities Superannuation Scheme

• Rentokil Initial Pension Scheme

• Unum Pension Scheme

• Ford

• Rio Tinto 2009 Pension Fund

• Vodafone

• Fujitsu - ICL Group Pension Plan

• Roche Pension Fund

• Wincanton Pension Scheme

• Scottish Amicable Staff Pension Scheme • Serco Pension • Skanska Pension Fund • Smurfit Kappa UK Pension • Tabuchi Electric UK Ltd • Thales UK • TI pension • Trafalgar House • Triplex

Prismatic Wealth Limited enquiries@prismaticwealth.co.uk

Prismatic Wealth Limited is an Appointed Representative of PrisWM Limited, which is authorised and regulated by the Financial Conduct Authority

www.prismaticwealth.co.uk