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Retirement Income Explorer

1. 3 Select Save Notes e If the client is seltemployed enter their net relevant earnings in the annual taxable income field RETIREMENT INCOME EXPLORER FULL VIEW GETTING STARTED Client details x Please enter client information to enable detailed entries to be processed The client forename and surmame will be stored as the case name Name Adviser Ref Date of Birth Sex Mr Example Client 01 10 1960 Male C Female Retired Annual taxable income include partner details Forename Sumame Date of birth Sex Annual taxable income C Yes No 55000 TE Mrs Example Client omone Male Female 24000 Cancel OLDMUTUAL WEALTH FACTS You will be taken to the retirement income forecast Since very few facts have been entered so far more information about the client s requirements in retirement and their current assets needs to be entered to create a meaningful forecast 1 Select the Facts tab 2 Select one of the categories below 3 Choose Add Goal Asset to enter details Goals enter details of required income at retirement or a one off objective or goal For example to fund a specitic purchase or additional income required over a period of time Incomes Shows current annual taxable income and forecast for State pension income Further income trom rent or consultancy work
2. re La O D 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 If you are copying and pasting the information into your own report please ensure you include the Important Information section and Assumptions and Limitations since your client must read this information with the forecast You should be aware that this is your document and you are responsible for it meeting your compliance requirements You will still need to produce a KFD and KFI for any product which is recommended and or reviewed Ss et OLDMUTUAL WEALTH ASSUMPTIONS 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 p
3. 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 GETTING STARTED 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 ongoing cost of the fund OCF and asset allocation will be taken from data received trom Financial Express You can pick from the 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
4. OLD MUTUAL WEALTH S RETIREMENT INCOME EXPLORER FULL VIEW USER GUIDE Getting Started Guide AR OLDMUTUAL CONTENTS Contents Introduction Platform homepage landing page Client details Facts Retirement options Income target builder SON OU BRON Income forecast 10 What it changes 11 Report 12 Assumptions RETIREMENT INCOME EXPLORER FULL VIEW GETING SIARTED OLDMUTUAL WEALTH INTRODUCTION RETIREMENT INCOME EXPLORER FULL VIEW GETTING SIARTED 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 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 You will still need to produce a KFD and KFI for any product which is recommended
5. ancy for the client sues Age you mightlveto G using data from the CMI Continuous Mortality Investigation committee 5 000 DE HATA AY 7 1 This is based on their age and gender co BESA wilh 8 You can select a range of possible outcomes based on good or poor A a a future market conditions predicted by stochastic modelling The default is E gt Most likely the 50th percentile Use the slider to change them and the State Benefit income forecast will update Main income 9 Choose to show the forecast in Today s values including future inflation J Drawdown income from assets Create report or Future values monetary amounts not including inflation z 10 Select Savings forecast to change the graph and view how the client s savings will increase or decrease each year Note Select Create Report to generate a VVord document which you can copy and paste trom and brand with your company logo Please turn to page 11 to view the report site Www oldmutualwealth co uk riet The assumptions used are explained in more detail in the Q amp As section of our adviser OLDMUTUAL WEALTH WHAT IF CHANGES The What it feature allows you to forecast the client s income or savings based on theoretical situations and explore how ditterent options could improve their future income 1 Select the Explore what if changes tab 2 Select a ca
6. 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 lite 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 RISK PROFILER The Risk profiler is available to help you establish your client s attitude to risk it 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
7. at 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 for income tax purposes 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 OLDMUTUAL WEALTH RETIREMENT INCOME EXPLORER FULL VIEW GETTING SIARTED 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 Quick View user guide Retirement Income Explorer Full View user guide detailed version e Retirement Income Explorer Risk Profiler Getting Started user guide If you require any further training or assistance with the tool please
8. come Take cema at a laler npa Fan Pa ane mri Tanga increates with ibitin rien etna exten delamee i Bip pias rooma on darii aii amp _ Spend ma harp sum Tirga an phahi iniiai a Ommadown mime from asst Bii amahy anar Hart aga 7 OLDMUTUAL WEALTH RETIREMENT INCOME EXPLORER FULL VIEW GETTING STARTED INCOME TARGET BUILDER income do you maed in retirement The target builder allows you to choose either as en er estimated or custom amounts for your client s annual expenditure on essentials desirables and luxuries in retirement to calculate the income ial a ae wne 19 596 Die bor Maba Slats Low pand Aunt High Spend Ceim required to fund their lifestyle fa Pe Pe EN par lay l Select the type of expenditure using the tabs at B rend tein the top of the screen 2 Choose Low Average or High spend BE cohn eer or alternatively select Custom and enter the values for each option ft Househoki bits GF 3 Click OK to use this income target for the retirement options You will return to the income forecast and the graph will update automatically Essentials 11 184 Desirablas 5 208 Luxuries Healihcare i p Public transport s Other Shell yir La gael annual encom 21 845 Notes The low average and high spend figures Caga are from data published by the Office for National Statistics ONS and
9. 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 Southampton 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 Limi
10. different scenarios after retirement can attect what they may receive 1 If you have previously entered details for this client on the tool tind their record using the Search tunction and select the Full View icon a piggy bank 2 Select Full View if you are entering details for the client for the first time Notes e The Risk Profiler option is further explained in our user guide Retirement Income Explorer Risk Profiler Getting started guide e The Quick View option is explained in the user guide Retirement Income Explorer Quick View RETIREMENT INCOME EXPLORER FULL VIEW GETTING STARTED KA OLDMUTUAL WEALTH EXISTING CLIENTS QUICK TOOLS yt Risk profiler Assess how your chants aittude to nsh eflact a Quick View asiy enter your information ten make plans Rot your eotiromet SUPPORT TOOLS Cheni data in one place Chent T 10 08 13 Poveeted by eValue s stochastic modeling egre zuppat ledmeck faq feiings keui ADVANCED TOOLS Evil Viw aA ARANES you nec rere shualion and by aberng their rebrement how changing any sament of the chants Pore pad coukl mpari Inher tule wastite WEALTH OLDMUTUAL CLIENT DETAILS l Enter the client s details including information requested about their income 2 It you wish to include the client s partner s details on the forecast select the box and enter the same information about them
11. e Pension Age Edit this in the box or use the slider on the graph This will not affect the State Benefit income on the graph since it is assumed to be taken from State Pension Age 6 If a 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 annual income if you haven t entered an annual gross 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 beneath to open the Income target builder this is described on page 8 8 There are different assumptions you can choose from to be incorporated into the forecast Use the drop down lists to view and select the options Example Client RETIREMENT INCOME EXPLORER FULL VIEW GETTING STARTED Epot Imai j fe oot ouckioos gt A ADVANCED Currant Explore what if changes Fats Retirement options ba Tommy vane fj oe a eo 2 Vou have 2 S08 chance of pete its maa the outed 73 lune ium a SS E gt 25 lump sum H Ep Tir gaia fom bor eam al Ep am z Ega na Hin Blend annuity and drawdown Rirremend age as l Aga yaur Layings run oui FA Partial simy age 65 Parta annuity an AJA yeu migi Few ia i Target Rebrement Elaran miiia Lite ite target taide A yT LNE a Sat Bene ime Main in
12. ed briefly in this guide For more detailed information please read the separate user guide Retirement Income Explorer Full View 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 GETING SIARTED Master User Demo from SIS Demo Environment DO NOT USE FOR LIVE ENQUIRIES OR TRANSACTIONS 4 Tools Literature Retirement Income Explorer Tend Matran o Wee wi you da wh your 000 HA0 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
13. 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 calculated2 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 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 th
14. ossible 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 to generate a period of taxfree 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 all 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 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 flexiaccess drawdown fund is assumed to be the same as the investment strategy selected previously for the
15. 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 encouraging action and demonstrating the value of your advice gt Launch this tool WEALTH Q OLDMUTUAL LANDING PAGE Full View is an advanced planning tool within the Retirement Income Explorer which shows how the client s available assets and incomes can meet a netoHax income or goal throughout the whole ot their later lite It explores how changing the retirement options or
16. reflect what UK households of two retired people are currently spending When this is used for the target annual income it is grossed up to an equivalent 4 annual income that is required based on 7 current tax rates A WEALTH 2 OLDMUTUAL RETIREMENT INCOME EXPLORER FULL VIEW GETTING STARTED INCOME FORECAST Low Returns This 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 You have a 50 chance of getting less than this outcome Q High Retums 25 lump sum at 65 2 The components that make up the annual income are colour coded A key ai is below the graph 3 The gross target retirement income can be increased or reduced using the ae i ax deducted from lump sum at slider The impact of this will be automatically reflected in the forecast ee 65 4 The retirement age and annuity age can also be changed using the slider ee eiremen 5 The lump sum amount and tax deducted are confirmed in monetary Income amounts aac 6 The age that savings run out is based on the information entered If this 70 000 Age your savings run out G age is shown in red or amber the fund is due to run out before their Gy estimated lite expectancy 7 Age you might live to shows the estimate of lite expect
17. ted 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 4VWR 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 Guernsey GY1 1AW Channel Islands PDF 11539 215 0787 August 2015 OLDMUTUAL WEALTH
18. tegory to expand it 3 Choose a different option or increase decrease from the current selection The graph will automatically update 4 The figures to the left of the page will show the current forecast and the What if forecast 5 Select Create report to export these details into a Word document You will need to save this report to your own Tiles to retain an audit trail Example Client ocxtoas gt f Current Explore whal ir changes n i TEE sib ve ial ct ale thr J SiE aa is A change my target income P Savo meea money Tahe menine risk RETIREMENT INCOME EXPLORER FULL VIEW GEING SIARTED Ingemna teracast E Teama voae UM Yeu hare a chee m geina bee Ban ihh culimme Ta dH Eom umo Ham E H Carri R mn State Benett income f M in imo Other income F Drawdown ipana from assets OLDMUTUAL WEALTH RETIREMENT INCOME EXPLORER FULL VIEW GETTING STARTED REPORT 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 Your retirement forecast Wola have SRbohed on et sider and yow rek menb opens These Geet a besi estimate od fete iinadiment retums anid ntubon the accendix details he Ahmin used ice he calculitions Income Fecacanl l To print or save the report use the buttons at the top of the Word document or the File menu
19. tor example can be added Expenses Enter the postretirement expenditure for living costs and luxuries These figures can be used to target an income Investments Enter details of existing savings or investments Pensions Enter details of the client s pension savings Properties Enter details of rental income and capital value of their properties Assets such as fine art can also be entered in this section a RETIREMENT INCOME EXPLORER FULL VIEW GETIING STARTED Example Client auckToms gf Current Explore whal changes Facts Reiremeni opii l Add Goal CRESE Frye E Raheman cone nop ieedbak ig miba bogo i Today s value noone fareceet ixl l x Rotuma i f kO Tou Bava a SO diea of peang less Pan hir culcome J354 ump gum at 55 bi Cae Tan Gaducted from imp Bum imi 55 Eg Targel loth aren Micii AG VOLT RAVES PLN ces EIE AH a Aga yau migr ivn o Sate Beneit income Satary from Example Company Lid OLDMUTUAL WEALTH 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 A f 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 Stat
20. your client can sign to confirm 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 specific plan for the client s options for taking income trom pensions and other investments can also be contigured 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 if 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 explain

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