Retirement Cashflow Planning
This looks at the client’s assets and expected growth to retirement together with income yield to establish whether this meets their net income in retirement requirements. If the net income requirement is not met, it shows the regular funding necessary to meet this shortfall.
Cost of Delay
This demonstrates the impact of delaying regular monthly or annual investment for specified number of years. The additional payments required to achieve the same fund, and the overall increase in total payments throughout the term will be shown.
Pension Funding
Based upon the clients objective for either an amount of pension or level of fund at retirement. This will show the net growth rate needed on clients existing fund, or the additional regular annual payment required if a chosen lower growth rate is be assumed, to achieve that objective.
Restricting Pension Tax Relief
Following the limiting of higher rate pension tax relief contained in Finance Act 2009, together with the introduction of the 50% Additional Rate of Tax this tax year. This will show the amount of expected tax charge, if any, on pension contributions paid to Money Purchase schemes for a High Income Individual.
Effective Pension Tax Relief
This compares client tax situation before and after a personal pension contribution is paid by the client to demonstrate the effective rate of tax relief being received on the pension contribution that is paid. This takes account of reduction in Personal allowance at £100,000 income and the limiting of higher rate tax relief.
Unsecured Pension
The income situation during retirement of an Unsecured Pension / Alternatively Secured Pension based upon chosen net growth rate and level of income. It has the option of showing levels of income if they are being reviewed annually or every five years, and the facility to compare benefits with an annuity.
Property Purchase Cashflow
This demonstrates the feasibility of a pension scheme being able to purchase a property. It also shows the cash flow situation of repaying the loan, that may have been required to fund the purchase, using the rent received together with any future pension contributions.
Income Tax
Based upon inputs of the client’s non-saving, saving, dividend and non-taxable income from different sources, this shows clients expected net income after deducting income tax and national insurance.
Salary v Dividend
Demonstrates the tax advantages of increasing clients Net Spendable Income by extracting profits as dividend payments as opposed to salary. Also shows further alternative option of extracting profits which allows inputs to be changed to suit client own circumstances.
Employ Spouse
Demonstrates the tax advantages of the spouse being employed to provide at least the same level of total net spendable income, whilst generating a pension contribution at effectively no cost.