Establishment and Management of your Account
We believe the key to a successful retirement is a mutual understanding of objectives and constraints. Initially we will require full information regarding your existing pension arrangements. Individual assessments will be carried out on each of these and you will receive a report specifying whether or not each existing benefit is suitable for transferring or would be better left under the existing arrangement.
While this 'due diligence' process is under way we will discuss and analyse your retirement objectives. At face to face meetings one of our analysts will walk you through your retirement using a computer simulation showing any variations of income ‘profile’ you might wish to consider.
Our retirement modelling system also takes into account other sources of income, such as state pensions, investment income or spouse's pension benefits. This results in a fully integrated cash flow analysis.
The computer simulation also allows you to try out any range of 'what if' scenarios and immediately see the likely effects over the longer term. This will help you to visualise the shape of your income requirements and so achieve a better understanding of what is realistic and feasible.
Our analyst will overlay your income objectives with simulations of investment performance reflecting a range of risk levels and varying market conditions. This ensures that you are aware of the extent to which your objectives depend on investment returns and what impact there would be on your benefits from adverse market conditions such as lower than expected performance or falling annuity rates.
The analysis will also include an indication of the benefits payable in the event of premature death as well as an indication of the anticipated outcome at age 75 taking account of possible changes in annuity rates during the withdrawal period. Where appropriate we will also show the effects of remaining in drawdown permanently as an alternative to buying an annuity at 75.
Once you are comfortable with a particular benefit profile we can design the investment strategy to suit. The analysis and proposed investment portfolio are confirmed in a preliminary report, pending completion of the 'due diligence' assessments on your existing arrangements. A further meeting will be arranged to reassess your requirements, giving you the opportunity to adjust your objectives if appropriate.
Following this 'fine tuning' your retirement model is stored on our systems for future reviews. Once a year one of our analysts will arrange to meet you to reassess your requirements taking account of the changing value of your account and market conditions. This enables you to keep in touch with your financial objectives in a uniquely helpful way. Every year you will have the opportunity to test your objectives for possible changes in your future requirements and check these are still attainable even under a downturn in market conditions.
Your retirement model is updated before and after the annual review meeting and a review report is issued showing the current projection of benefits as well as detailing any proposed changes to the investment strategy.