Full VieW User gUide
Contents
1. Continued on the next page ee ATE coon nel OMIW ISA 127 000 00 _ OMW CIA 36 000 00 Savings account 45 000 00 Add Asset Assets are investments including savings Notes and any property you cumeniy Add Pension e Personal Pensions and SIPPs are assumed to be uncrystallised Current Account 0 00 Asset type e Income Drawdown is assumed to be crystallised OMW ISA Sarai e If the client is a member of an employer s defined Product type Please select wee i OMW CIA 38 000 00 Please select contribution pension scheme enter its details Se ase pesca pension i ion opti SIPP under the Personal pension option Savings account 45 000 00 Crystallised Income Drawdown Defined benefit DB plan Total assets 210 000 00 an cath OLDMUTUAL WEALTH PENSIONS ADD PENSION I 9 1O II Enter a product name If you are running a joint forecast it is helpful to include the name of the owner of the product Select the owner if you re doing a joint forecast If you have a projection of future benefits trom the provider tick the box and enter the details The tool will then calculate the ongoing charges for the account The option to create a drawdown arrangement at retirement age is automatically selected Choose to enter specitic tunds or select a risk2. Asset type Investment Froduct type Please select Please select i Product name Cash OMW ISA Product type OMW ISA Product name OMW ISA 2 Owner Example Client E OLDMUTUAL WEALTH INVESTMENTS ADD INVESTMENT CONT I oo 12 Choose to enter specific funds or select a risk based profile based on the Old Mutual Wealth risk profiles Risk 1 to Risk 10 Search for the name of the fund matching results will appear as you type Or use Advanced search to find funds using specific criteria such as fund manager or sector If you cannot find the fund use Manual entry to type in the name of the fund and the percentages invested in the various asset classes The funds you choose will be added below Enter the value invested in that fund The ongoing cost of fund OCF of the fund is pre populated using data from Financial Express You can amend it if necessary If your client is making contributions to this account tick the box Enter the amount of the contribution trequency increase basis and start and stop times Enter the product charge either as a monetary or percentage amount This figure should include ongoing adviser tees being taken but not include the fund OCF _ The current date is shown for the valuation date as a default amend this if necessary Select Save If you do
3. Wee wi you da wh your 000 A0 at so satre ommes ao O ue ee ee s on BBO Se Bap Ges EE Bo lt Sa BB BSBA BOSS DE Me ee m aes n as A A n E eee i a qeqe E w ka ne o System Admin Fees amp Commissions Back to Homepage Introducing the Retirement Income Explorer tool Following the April 2015 pension reforms and the Taxation of Pensions Act we have seen huge changes in the way retirement advice is given It s no longer just about the choice between annuity and drawdown The wider and more flexible income options now available mean that advice needs to be more holistic It has to take account of issues such as longevity future aspirations ongoing attitude to risk minimum income requirements and tax and importantly funding retirement is not just about pension income Until now there hasn t been a simple tool that enabled advisers to model all these factors into a variety of scenarios in a clear way that makes sense for their pre and at retirement clients The Retirement Income Explorer tool changes that It lets you detail your clients current and future expenditure assets their attitude to risk and their income needs The tool then brings to life a range of possible future outcomes based on different risk appetites economic scenarios and changes to income profile It s a great tool for stimulating discussion
4. 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 18 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 contirm their agreement to following your discussion with them Please read the Retirement Income Explorer Risk Profiler user guide for more information 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 e advanced tax planning to target a net income or expense requirement throughout retirement e additional data entry options e 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 netoHax 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 postretirement 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 s
5. OLD MUTUAL WEALTH S RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE AR OLDMUTUAL CONTENTS Contents Introduction Platform homepage landing page Client details Facts Goals Add goal Incomes State Benefit income SON OU BRON 10 Incomes Main income 11 Expenses 12 Investments 13 Investments Add investment RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE 14 Investments Add investment cont 15 Pensions 16 Pensions Add pension 17 Pensions Add pension cont 18 Properties 19 Properties Add property 20 Summary of saved assets 21 Retirement options 22 Income target builder 23 Income forecast 24 What it changes 25 Report 26 Assumptions OLDMUTUAL WEALTH INTRODUCTION RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Old Mutual VVealth 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 lite 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
6. mr u SP camna Tast coer aay ret 123 FP case ot yun 3015 1005 P Tost Pension Ses 10 8 12 TH YH AP cose 24 npr 2018 1029 Chent 1 10 0043 p Powered by eValue s stochaslic modeling enone QUICK TOOLS yt Risk profiler Assess how your ghani fhe mosi ence opitele aioe ainia Gunick Whew aon he asiy enter pour information pans ai your ddie aech SUPPORT TOOLS Chent cata Enter tive and motity al in One phe z da NS suppa kiia faq piine kaui ADVANCED TOOLS os Full Wima J Anahite Th mhepmari Sthiation and by alering thet peirerment Option oF explains poata demaniais how Chane oy kymi of ho Clauss Maren Pa could anprore Ther tule irrita Notes e The Risk Profiler option is further explained in our user guide Retirement Income Explorer Risk Profiler e The Quick View option is explained in the user guide Retirement Income Explorer Quick View e There is a shorter version of this guide available Retirement Income Explorer Full View Getting Started guide OLDMUTUAL WEALTH CLIENT DETAILS reference you may have for them 2 Confirm it they are already retired or not if they are enter the amount of pension or other income that they are receiving 3 Enter their annual taxable income it they are not retired 4 You can run a joint forecast by ticking the box to include partner details 5 Enter the p
7. f you want to enter more precise figures for expenditure individual figures for household bills tor example you can enter these into the Expenses section on the Facts tab see page 11 of this guide OLDMUTUAL WEALTH 22 INCOME FORECAST This Pa is a closer view of the income forecast The graph shows the estimated income the client will receive in retirement each year based on the information you have entered The components that make up the annual income are colour coded A key is below the graph The gross target retirement income can be increased or reduced using the slider The impact of this will be automatically reflected in the forecast The retirement age and annuity age can also be changed using the slider The lump sum amount and tax deducted are confirmed in monetary amounts The age that savings run out is based on the information entered It this age is shown in red or amber the fund is due to run out betore their estimated lite expectancy Age you might live to shows the estimate ot life expectancy tor the client using data trom the CMI Continuous Mortality Investigation committee This is based on their age and gender You can select a range of possible outcomes based on good or poor future market conditions predicted by stochastic modelling The default is Most likely the 50th percentile Use the slider to change them and the forecast will u
8. tab 2 Select a category to expand it 3 Choose a different option or increase decrease trom the current selection The graph will automatically update 4 The figures to the lett of the page will show the current forecast and the What it forecast 5 Select Create report to export these details into a Word document You will need to save this report fo your own Tiles to retain an audit trail RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Example Client awtos f cat expe wat cages iy t Currant Income forecast Today s vieja UY 9 f Hin i You hawe a S056 chande of getting keas than Mis outcome Saan Aine S ef cue 5 Vai i Tit deducted fram ump surr g H war FAE ceren i gt aioe Wi Aud your sananys run oul G F i lal fis What i amp Benefit income D Main income Other income E Drawdown moome fon asses 28 OLDMUTUAL WEALTH RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE REPORT ke ce BE Eh Aandi ABc umon AM d l H Fanit r E l H T j 5 a T k r P i I L bing we Er A EA apik L a e a e Ehgaaant ai lint Fu it a The client report will open as a Word document and you can copy and paste the contents into your own report or brand this one with your company logo ee s a mas mem Se eee ee ee a Your retirement forecast poe hunt aetecked onthe ibda and yout rebramerntcpiona Tha
9. Benefit income Main income Ommadown income from assis Tange an sanual income a OLDMUTUAL WEALTH RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE INCOME TARGET BUILDER The target builder allows you to choose either estimated show coat veies in C j vaart amoena or custom amounts for your client s annual expenditure on essentials desirables and luxuries in retirement to calculate the income required to fund their lifestyle _ mini 19 596 Cec few hiban ia AEE Heh hoe 1 Select the type of expenditure using the tabs at the top of me mou A donk ae fe 7 7 taam e in f i the screen 2 Choose Low Average or High spend or alternatively Citing EO select Custom and enter the values for each option ae a E Saa Kea 3 Click OK to use this income target for the retirement options You will return to the income forecast and the Jp Heathcaro EZS graph will update automatically Essentials 11 184 Desirables E5208 Luxuries Pie Haai BE Oihe a2 g Beery ater x 21 845 Notes N Cancel e The low average and high spend figures are from data aN published by the Office for National Statistics ONS and lect what UK households of two retired people are currently spending e When this is used for the target annual income it is grossed up to an equivalent annual income that is required based on current fax rates e
10. Guernsey GY1 1AW Channel Islands PDF 11540 215 0787 August 2015 OLDMUTUAL WEALTH
11. also be used to capture other non investment based property and assets that may be available for sale such as art collections tine wines and classic cars OLDMUTUAL WEALTH SUMMARY OF SAVED ASSETS 1 The assets that you have saved are summarised 2 A graph showing each asset as a percentage of the client s total assets is shown 3 If you need to add to this select the Add another asset option A Select Close to go to the Full View forecast 2 Add Asset Assets are invesiments including savings pensions and any property you currently own Curent Account 0 00 Old Mutual 127 000 00 Wealth ISA Old Mutual 38 000 00 Wealth CIA Savings 45 000 00 Example Client s 356 000 00 House Total assets 566 000 00 Add another asset amp RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Total Assets 566 000 00 Old Mutual Wealth ISA Example Client s House 63 WEALTH OLDMUTUAL RETIREMENT OPTIONS 1 Select the Retirement options tab 2 Choose lump sum option either no lump sum 25 specific amount or the full pension fund 3 Enter the age the lump sum is to be taken 4 It less than 100 of the pension pot is being taken as a lump sum choose either an annuity income drawdown or a blend of the two 5 The retirement age defaults to the State Pension Age Edit this in the box or us
12. at their current asset allocation and utilising the eValue Economic Scenario Generator ESG model to forecast the likely returns achievable in the future The tool runs 1 000 different simulations of future predicted economic conditions for each of the variables that are being modelled on an annual basis and shows the central 90 of those outcomes that are either likely or quite reasonable to expect It takes into account economic variables such as interest rates real GDP price inflation equity dividend yields and growth rates property yields and growth rates currency strengths and the tuture price of annuities at retirement age It excludes circumstances that could never happen such as negative interest rates All assets are treated consistently and since inflation is part of the model the forecasted real returns are both sensible and realistic You can easily show a range of the possible outcomes based on good or poor future market conditions using a slider OTHER ASSUMPTIONS The Annual Allowance and Lifetime Allowance are not factored into the calculations therefore should these allowances be exceeded the restriction of tax relief is not considered in the forecast The standard tax free annual personal allowance is assumed currently 10 600 in the 2015 2016 tax year The State Pension will be factored in to the nil rate band before any other income 26 OLDMUTUAL WEALTH RETIREMENT INCOME EXPLORER FULL VIEW USE
13. based profile these are comparable to the Old Mutual Wealth risk profiles Risk 1 to Risk 10 Search for the name of the fund matching results will appear as you type Or use Advanced search to find funds using specific criteria such as fund manager or sector If you cannot find the fund use Manual entry to type in the name of the fund and the percentages invested in the various asset classes The funds you choose will be added below This may take a few seconds Enter the value invested in that fund The OCF ot the fund is pre populated using data trom Financial Express You can amend it it necessary Continued on the next page Q RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Add Pension Asset type Product type Product name Owner Projection available Create a drawdown agreement to drawdown into Screening Funds Fund oe Mutual Spectrum 6 U Acc Total Example Client s Personal Pension a a 8 afund o Fund value E gt 350000 g 350 000 4 Advanced search s Manual entry bal Assumed M ee w Note When selected the Screening option see marker 12 asks a series of questions to help iden tity whether or not the client should consider transferring their pension to another provider This feature does not affect the forecast OLDMUTUAL WEALTH PENSIONS ADD PENSION CONT 1 Tick the C
14. encouraging action and demonstrating the value of your advice gt Launch this tool WEALTH Q OLDMUTUAL LANDING PAGE You will come to the landing page of the Retirement Income Explorer tool This page of the guide explains what the options are l Existing clients you have run reports on previously are listed Select their name to run reports on their details 2 Or search for their name to view their record 3 Risk Profiler allows you to assess the client s attitude to risk 4 Quick View allows you to enter a few basic details about your client to project what their tund value and potential gross income would be should they take out an annuity drawdown or lump sum at retirement 5 Use Client data to enter your clients details and return to review or modify them at any time You can also enter client details atter entering Quick View or Full View instead of using this option 6 Full View is an advanced planning tool which shows how the client s available assets and incomes can meet a netoftax income or goal throughout the whole of their later life and explores how changing the retirement options or different scenarios after retirement can affect what they may receive Select this option and proceed to the next page of the guide i RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE WEALTH Q OLDMUTUAL EXISTING GLIENTS ul oe E y Care dun 2018 1048
15. specitic purchase or additional income required over a period of time See pages 7 8 of this guide Incomes Shows current annual taxable income and forecast for State pension income Further income trom rent or consultancy work for example can be added See pages 9 10 Expenses Enter the postretirement expenditure for living costs and luxuries These figures can be used to target an income See page 1 1 Investments Enter details of existing savings or investments See pages 12 14 Pensions Enter details of the client s pension savings See pages 15 17 Properties Enter details of rental income and capital value of their properties or other assets such as fine art See pages 18 19 is RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE f Example Client aucktoms gf nooo 6 6Clinednieck ig Stang bogo H Curenl Explore whal i changes Facts Retirement options income tosset x Todays fal E ai en Goals fou eave a SO cheese of petting less Ran this aiomme 354 ump sum at 55 E Astrement scone E o Ei R Add foal Tan deducted irom ump eum ii amp incomes i 1 a E Cc Targel aP investenarn Rietiement a ee Ag VOLT LAVOE rungu me g i i E E ne A Aga yau migr ivn o Sate Beneit income Satary fron Example Company Lid OLDMUTUAL WEALTH RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Cu
16. 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 Tool QUICK VIEW The Quick View option provides an initial overview of the new pension options available since April 2015 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 tund 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 lite 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
17. NS How is the Annuity figure calculated You can choose fo take no taxfree cash lump sum at outset 25 or a specific amount The remainder of the pension fund is used to buy an annuity with the following assumptions e Guaranteed to be paid for the first five years e 50 is payable to a surviving partner on death e Increases in line with RPI The income received is added to the assumed state pension if the age that benefits are illustrated is at or after retirement The annuity amount is based on standard mortality rates published by the Institute and Faculty of Actuaries IFoA The income shown is gross The cost of annuities is estimated based on bond yields It is not currently possible to enter specific annuity costs There is an option to take no taxfree cash lump sum at outset or a specific amount The tool also allows for the purchase of an annuity with part of the fund at retirement blended with income drawdown then purchase of an annuity with all of the remaining fund at a later date How is the Drawdown figure calculated You can choose fo take no taxfree cash lump sum at outset 25 or a specific amount If no lump sum is specified phased crystallisation is assumed to be used from uncrystallised funds into a flexi access drawdown product fo generate a period of tax free income and then taxed income is taken from the flexi access drawdown fund Any taxfree cash lump sum you specify will be obtained by crystallising a
18. R GUIDE 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 tollowing support documents are available e Questions and Answers www oldmutualwealth co uk riet Retirement Income Explorer Due Diligence document Retirement Income Explorer Full View Getting Started user guide Retirement Income Explorer Quick View user guide e Retirement Income Explorer Risk Profiler Getting Started user guide 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 0808 171 2626 or ask omwealth com www oldmutualwealth co uk 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 amp 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 amp Pensions Limited are registered in England amp Wales under numbers 1363932 1680071 and 4163431 respectively Registered Office at Old Mutual House Portland Terrace South
19. als close the overlay that appears after saving which summarises all of the expenses you have entered This is shown on page 20 of this guide Tip If you and your client are unsure of what their expenses will be in retirement the Income target builder option shows you the average spending amounts for retired couples across the UK using data from the Office of National Statistics which you can select to use as a starting point Please see pages 21 22 for details RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Current Explore what if changes Facts Retirement options ame gt AP invesimonts Enpanses House amp Home Transport 41 000 00 Health amp Family 1 000 00 ti e 2 000 00 F Leisure amp Travel 3 000 00 Food amp Drink Example E 4000 00 Example E aiti gt DAH trene 6 Setich beck to single inp mode Other 000 Annual total E 17 600 OLDMUTUAL WEALTH INVESTMENTS 1 In the Facts tab select the Investments section 2 Current Account is automatically added since the tool assumes disposable income is saved within it each year 3 Select Add Asset 4 Choose Investment Pensions and property can be entered either into the Investments section or into their own sections on the Facts tab You only need to enter them once Those options are demonstrated on the following pages of this gu
20. ampton SO14 7EJ United Kingdom Old Mutual Wealth Life Assurance Limited and Old Mutual Wealth Lite amp 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 110462 and 207977 respectively Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority with register number 165359 VAT number for all above companies is 386 1301 59 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 171847 and 208543 respectively Old Mutual Global Investors is registered in England amp Wales under number 02949554 and its registered office is 2 Lambeth Hill London ECAP 4WR Old Mutual Investment Management is registered in England amp Wales under number 4227837 and its registered office at Millennium Bridge House 2 Lambeth Hill London EC4V 4AJ VAT number for all above companies is 386 1301 59 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 2002 Registered number 2424 Registered Office at Albert House South Esplanade St Peter Port
21. another assat OLDMUTUAL WEALTH A RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE PROPERTIES ADD PROPERTY a 1 Enter the name of the property This will appear on the ae ear forecast pensions and any propery you amey Add Property 2 lf you are running a joint forecast select the client that this es property belongs to aean pi lioni 3 Enter the address and tick the box if this property is their aaith 92 bia E main residence and therefore taxexempt on sale cn was e IE Rene A Enter the current value and date ee exec Coontz B 5 Choose an escalation basis am a 6 Tick the box if the property is exempt from Inheritance Tax ESTAT ee z E 7 t the property is being sold enter the sale date original aiibi warn 3 R purchase price and percentage to draw on sole ee eas aca amp 8 It the property is being rented out enter the rental income eri A a g N after agency charges the frequency and increase EANO T Le asis 9 Select Save Sale Notes Original purchase price e Property is assumed to be residential The capital value of the property is not available to fund income until sold Percentage ta withdraw on sale e Net rental income is assumed to be net of agency charges and the Rental amount entered will be taxed as income ieee tan e Net rental income will be included in the forecast as a fixed income until the property is sold Firequency e The Properties option can
22. artner s personal information 6 It the first client is not retired enter the annual taxable income for their partner If the first client is retired you will be asked to enter details of their partner s pension income instead Z Select Save Note e If the client is sel employed enter their net relevant earnings in the annual taxable income field Name Adviser Ref Date of Birth Sex Retired Annual taxable income Include partner details Forename Sumame Date of birth Sex Annual taxable income RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Client details x Please enter client information to enable detailed entries to be processed The client forename and surmame will be Enter the personal details for the client including any stored as the case name Mr Example Client lt h 01 10 1960 Male C Female C Yes No amp e 55000 lt a co amp Mrs Example Client amp 0110 1963 Male Female g 24000 GG OLDMUTUAL WEALTH FACTS You will be taken to the retirement income forecast Since very few tacts have been entered so far more information needs to be entered to create a meaningful forecast 1 Select the Facts tab 2 Select one of the categories below to enter details for it Goals enter details of required income at retirement or a one off objective or goal For example to fund a
23. ch summarises all of the income you have entered This is shown on page 20 ot this guide RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Current Explore what if changes Facts Retirement options Goals State Benefit income fv Main income amp E gt Add Income Expenses Edit income cue Ganatit cries m m ai mam MEQ Main income sae rs Type Main income Total incomes key P1600 Name Salary from Example Company Ltd lt q Chere Example Chord Add asgther mcome Frequency Stirt age TIP Any turther income the client is receiving from rental income or consultancy work for example can be entered by selecting the Add income options please see marker 13 o OLDMUTUAL WEALTH EXPENSES l In the Facts tab select the Expenses section 2 Select Add Expense 3 Enter an amount for the annual expenditure in each category A Or Select the symbol next to the category to enter more specific information 5 The category is broken down into sub categories Their titles can be edited Enter details of the amount of expenditure in each the trequency start and stop ages and increase rate 6 Select Add expense to add another sub category it required 7 Select Save when finished To return to the forecast or to enter more facts about the client s income expenditure and go
24. e the slider on the graph This will not affect the State Benefit income on the graph since it is assumed to be taken trom State Pension Age 6 Ifa blend of annuity and income drawdown is being taken enter the age and percentage of the pension fund that is to be taken as annuity 7 The target retirement income field defaults to 50 of the client s current gross annual income if you haven t entered an annual income in the Goals section of the Facts tab You can enter a different figure or Use the target builder if you re unsure option to open the Income target builder this is described on page 22 8 There are different assumptions you can choose trom to be incorporated into the forecast Use the drop down lists to view and select the options Example Client oncxtoos gt RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Hpi maii i a leo ij ina a Currant Explore whal if changes l pita a vane fell EME za High T Fatts Retirement options S E Todays vane ej e a 7 oo 2 TAS lump Sum P Yoa h i 2 SOR dhani oF piina Ges MaA the aden JIR Mutha damn at Se Age you wan ine key ES ES a0 Ham Tin Saina Pom umo ean al a j ay Biend Annuy and drawdown iz RAPATA o Firenemen age ADA EN L Pan Bel Partial sime age as g Partial annuity a0 Target Rebrement Elar agi inene Ute ite target aaide A yT LNA ADR yau rg iva 15 i a p Slate
25. er details of any goals you have Add goal Retirement 27 500 00 income Type Total goals 27 500 00 Name Owner Add another goal Frequency Atage Amount Increase rate RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Please select Travel amp Holidays Mortgage Repayment Self Indulgence Mortgage Repayment A Change icon Mortgage Repayment lt h 6 Cancel Q OLDMUTUAL WEALTH INCOMES STATE BENEFIT INCOME 1 In the Facts tab select the Incomes section 2 State Benefit income shows the current annual rate of state pension to be taken trom their State Pension Age Select it to review the details or un tick the box next to it to remove it from the forecast 3 Select Edit to make changes 4 The State Pension Age of the client is shown as the Start age You can amend this if the client is deterring their State Pension 5 It the client is over 55 and has received a State Pension statement with a different amount to be paid as income you can update the current State Pension amount assumed with this figure 6 Choose an increase rate no increase with inflation with wage inflation or by a fixed percentage 7 Choose whether this amount is gross or net of fax 8 Select Save To return to the forecast or to enter more facts about the client s income expenditure and goals close the overlay that appears after saving which
26. full UK fund universe not only the reduced list of funds offered through Old Mutual Wealth s platform If you choose a riskrated fund you will need to enter the OCF for that fund No assumptions are made For any new contribution you can net down the amount entered to allow for any initial product provider platform fund or adviser charges How is Age you might live to figure calculated The lite expectancy age shown is the age that the client has 50 probability of living to based on mortality tables It is therefore the median or 50th percentile of the maximum potential age they are predicted to live to Life expectancy is shown as a whole number so if the median is a fraction of a number it will round up The life expectancy estimate is calculated using male and female mortality rates and it is quoted for when the client reaches 65 The rates assume general mortality levels and so health litestyle or smoker status are not considered How are investment returns calculated The Retirement Income Explorer tool uses stochastic modelling a method used to estimate the probability of outcomes using random variables to predict what conditions may be like under different situations It is most well known as the technique used in weather forecasting The tool uses this technique to forecast the performance of your client s investments and the likelihood of it sustaining them throughout their retirement This is achieved by looking
27. ide Pension page 5 17 Property page 18 19 Current Facts Retirement options Goals incomes E gt Investments k Current Account 2 Add Asset i Pensions Properties Add Asset Assets are investments including savings pensions and any property you currently own Current Account Total assets Add another asset RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Explore what if changes Add an Asset Asset type Please choose Please choose Pension Property OLDMUTUAL WEALTH INVESTMENTS ADD INVESTMENT Add Asset Assets are investments including savings pensions and any property you currently own l Select a product type trom the drop down list iaia 2 Enter a product name If you are running a joint forecast it is helpful to include the name of the owner of the product 3 Select the owner of this product if you are running a joint case Continued on the next page Edit Investment Assets are investments including savings pensions and any property you currently own TIP If you have more than one investment to add use the Add another asset link to enter the additional details after you have saved the first investment See marker 4 Current Account 0 00 OMW ISA 127 000 00 Total assets 127 000 00 RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Add Investment
28. is cree a byi atirni of tuaore veered hataran aiaiai The apparte dataa Me beturphore used tot Re calcudabors inoome Forecast Ried nituid Toni ra You hae a SO chance of priina dese than thes outcome l To print or save the report use the buttons at the top of the Word document or the File menu abeunt Wat Tee fal eta emda hae Here ine ip aa T IMPORTANT NOTES This report will not be saved on the Retirement Income Explorer tool or in the client s record on the platform You will need to save it to your own computer or files for audit trail purposes aB iinit H ges is het UET Pi am a maton of EEN Pf hard 2 rae el papi meee ak ore CTE AE en cel gaing nag If you are copying and pasting the information HPS chance into your own report please ensure you include the Important Information section and Assumptions and Limitations since your client hE e a a a ceed Bae Tey folloaomc bie nampa Sree i bor aang pei Salk See eres moar ee core must read this information with the forecast sadn set ween net ae You should be aware that this is your document maaan a ete and you are responsible for it meeting your irran o e e e compliance requirements You will still need to mentee Q mE produce a KFD and KFI for any product which Takamaa FA a X Bs ume is recommended and or reviewed OLDMUTUAL WEALTH 29 ASSUMPTIO
29. ll of the pension fund into a flexi access drawdown arrangement This is then assumed fo remain invested and projected onwards from the retirement age and to provide drawdown income from the pension fund to meet the target income amount if there is a shortfall after the annual State Pension has been paid This will continue until the fund runs out and the age that this is expected fo happen is shown The amount to be drawn out each year is the amount needed to satisfy the gross income target this will be taxed as income The investment strategy whilst the consumer is drawing money out of this flexicdrawdown fund is assumed to be the same as the investment strategy selected previously for the accumulation phase This can be changed using the What IF scenarios by taking more or less investment risk How is the Lump sum figure calculated The client is assumed to draw all of their pension fund in a single lump sum payment 25 of the amount withdrawn will be tax free The remainder is taxed as income You can specity whether the lump sum will be spent or reinvested to provide income in the future RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE WHAT CHARGES FEES ARE INCLUDED IN THE CALCULATIONS You can enter specific product charges and adviser fees when inputting the client s investments into the tool If you select funds the OCF and asset allocation will be taken from data received from Financial Express You can pick from the
30. not have any property or pension details to enter please turn to page 20 of this user guide RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Edit investment AGEE ang investments udg savings permoni and any bpeti you osrentiy oven Current Accor AEn n ORIN IEA E127 000 00 olal accate bi io G acd acter asset OMW i5A Product hee Product name Chenier Huneds Contos Regudat contributions oninibation frequency Contrilrtion start Contribution shop Produc Changes duit pound changes 2 EE Fii E gt O hiia Spain 6 Lat ct Total 0 00 037 OMW isa B OMW ISA a Enano Cieni i E Enter spocie tuns Ferd v hi T e 127 000 00 amp 127 00000 00a Note For applicable Investment types you can include regular withdrawals being made from the investment including their frequency and start stop dates This withdrawals will be included as income received in the forecast ft OLDMUTUAL WEALTH RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Current Explore what if changes PENSIONS Facts Retierncicplions deat 1 In the Facts tab select the Pensions Section 2 Select Add Asset 3 Choose Pension from the drop down list 4 Select the product type trom the list seman Assets are investiments including savings pensions and any property you currently Add an Asset own
31. ontributions box if payments are being made into the pension and enter details of the gross amount frequency increase basis and start stop dates 2 Enter the product charge as either a monetary or percentage figure This should include any adviser fees being facilitated but not fund charges 3 Enter the valuation date for the fund values This defaults to today s date 4 Select Save lf you do not have any property details to enter please turn to page 20 RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Fund Fund value Old Mutual Spectrum 6 U2 Acc g 350000 Total g 350 000 Contributions Enter contributions as Eg Employee contributions 200 8 gross Employer contributions F o gross Contribution frequency ith Contribution increases Contribution start Contribution stop At retirement gt Product Charges Fa Annual pound charges g 000 00 g G Annual percentage charges 13 3 Valuation date 1106 2015 3 Assumed OCF 1 04 4 OLDMUTUAL WEALTH RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE PROPERTIES l In the Facts tab select the Properties section 2 Select Add Asset 3 Select Property trom the drop down list FSSAETS dne OV PETE CCL SF pe Add an Asset Curran Aora ro ao Asaa type Sik lua VWinaiin HA CEA a Til Wealth CA Saag Tobe Assnts Add
32. or income alter retirement remains and enter details below or Use expenses to meet specitic Spee oe expenditure in retirement you can enter these in the Expenses Noa E section of the Facts tab A ae aol Parlners percenlayje sojas Select a partial or full annuity if required and enter details of the basis specific annuity costs cannot be included _ Select Save when finished 7 Pull annuity WEALTH OLDMUTUAL ADD GOAL 1 The retirement income and other goals are summarised on the left of the page 2 Choose the type of goal from the dropdown list 3 Enter a specitic name for the goal if required 4 Choose a trequency for the goal 5 Enter an age to start taking income for this goal and if it is not one off the age it should finish 6 Enter the amount Z Choose an increase rate none with inflation or with wage inflation 8 Select Save when finished 9 Select Add another goal to enter details of another goal the client wishes to achieve To return to the forecast or fo enter more tacts about the client s income expenditure and goals close the overlay that appears atter saving which summarises all of the goals you have entered This is shown on page 20 of this guide Add Goal Enter details of any goals you have Add goal Retirement 40 000 00 income Type Total goals 40 000 00 Add another goal Add Goal Ent
33. pdate Choose to show the forecast in Today s values including future inflation or Future values monetary amounts not including inflation Select Savings forecast to change the graph and view how the client s savings will increase or decrease each year Select Create Report to a a Word document which you can copy and paste trom and brand with your company logo This is shown on page 25 of this guide Today s value RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Low Returns You have a 50 chance of getting less than this outcome 45 000 40 000 Target Retirement Income 7 500 70 000 15 000 10 000 5 000 E 0 65 gt lt F State Benefit income J Main income T 5 30 oo E Drawdown income from assets g High Retums 25 lump sum at 65 Tax deducted from lump sum at 65 g Age your savings run out 7 A f t Age you might live to we Create report Note The assumptions used are explained in more detail in the Q amp As section of our adviser site www oldmutualwealth co uk riet WEALTH OLDMUTUAL WHAT IF CHANGES The What if feature allows you to forecast the client s income or savings based on theoretical situations and explore how difterent options could improve their future income l Select the Explore what if changes
34. pecific plan for the client s options for taking income trom 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 it scenarios can be entered to show how changing any element of the retirement plan could improve the client s future lifestyle The Full View option is explained in detail in this guide For a briefer version please read the separate user guide Retirement Income Explorer Full View Getting Started 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 OLDMUTUAL WEALTH HOMEPAGE 1 After logging into Old Mutual Wealth select the Tools tab 2 Select the Retirement Income Explorer tool 3 Select Launch this tool KA OLDMUTUAL WEALTH Clients Portfolios You are here Home gt Tools Tools UScan WealthSelect Managed Portfolio Reporting Portfolio Explorer WealthSelect Managed Managed Funds Analyser KnowledgeDirect Capital Gains Calculation Retirement Income Explorer RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Master User Demo from SIS Demo Environment DO NOT USE FOR LIVE ENQUIRIES OR TRANSACTIONS 4 Tools Literature Retirement Income Explorer Tend Matran o
35. rrent Explore what if changes Facts Retirament options GOALS Enter details of required income at retirement or a one off objective or goal For example to fund a specific E gt purchase or additional income required over a period of time Entar stais ef any gomis yeu have Retirement income 1 Select Add Goal to add a required income in addition to fear EZF 400 00 the retirement income This step is explained on the next page 0 n m o Retirement income i ni Owe Example Cheni 2 Select Retirement Income Total goai EJT 500 00 The postretirement income has been populated with of 50 of the current annual salary entered and other detault assumptions Select Edit to amend them Retirement start age is prepopulated with the state pension age Add another goal Lump aum fige Th belie lu BUT a Change ieee ir Change con Lump sum at retinens 23 for the client This can be amended here or later in the retirement 5 Amend the lump sum details to be taken it required e a r a 6 Select the basis for the drawdown from the pension Either DON withdraw an unlimited amount per year to meet the expenditure mee a needed or withdraw a sustainable amount based on an estimate aes e calculated each year of the amount that could continue to be drawn from the pension tund over the whole of their later life Partia anny a ves day canon cee Z Choose to target a set amount f
36. summarises all of the income you have entered This is shown on page 20 ot this guide Q RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Current Explore what if changes Facts Retirement options Goals fv State Benefit income amp lv Main income Edn Income ETT 1 kat 16 00 Add ancihes income State Benefit income Type Nam l 7 716 00 Main State Pension income State Benetit income Example Caon OLDMUTUAL WEALTH INCOMES MAIN INCOME 1 In the Facts tab select the Incomes section 2 Main income shows the gross annual salary entered previously Select it to view or edit details 3 Select Edit to make changes 4 Enter a specific name for the income if required 5 If you are running a joint forecast choose which client this income relates to 6 Select the frequency that the income is received 7 Select the start age tor the income this will default to the client s current age 8 The income is assumed to stop on retirement It not untick the box and enter the age it is due to slop 9 Amend the amount if necessary 10 Choose an increase rate none with inflation or with wage inflation 11 Select whether the income is gross or net 12 Select Save To return to the forecast or to enter more facts about the client s income expenditure and goals close the overlay that appears after saving whi
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