Client(s) Needs, Aims and Objectives · Client(s) Needs, Aims and Objectives Please provide full and thorough reasons why the client(s) wishes to consider the transfer of their

Client Fact-Find

Client Name

Adviser

Introducing Firm

Date Completed

Client(s) Needs, Aims and Objectives

Please provide full and thorough reasons why the client(s) wishes to consider the transfer of their defined benefit pension? Using the client’s own words, summarise their specific retirement objectives and explain why they feel that these can be met best by transferring their ‘valuable’ defined benefit scheme.

At what age does the client plan to retire?

At what age does the client plan to access the pension being reviewed?

Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416. Page 1 of 15

Personal Details Client Spouse / Partner

Surname

First Name

Title

Date of Birth (Age) ( ) ( )

National Insurance Number

Nationality

Country of residence for tax purposes

Date moved from UK

Marital Status

Do they plan to move or return to another country? If yes, details?

Address

Contact Number(s)

E-mail address

Health / Longevity Client Spouse / Partner

State of Health Good

Does the client, or has the client ever suffered any medical conditions that they feel may affect their life expectancy? If yes, provide full details

Does the client have any reason to believe that the longevity or medical history of their family will impact on their life expectancy? If yes, provide full details

Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.

❑ Yes ❑ No

❑ Yes ❑ No ❑ Yes ❑ No


❑ ❑❑ PoorReasonable Good ❑❑ PoorReasonable❑

Page 2 of 15

Dependents Client

Does the client view their finances jointly or separately?

Jointly

If applicable, does the client consider their spouse / partner to be dependent on their income at this current time? If no, please provide full details why

Will their spouse /partner be dependent on their income in retirement? If no, please provide full details why

Does the client and/or their spouse / partner have any children If so, please provide name, age and period of dependency (if any) for each child

Do they have anyone else that is financially dependent on them? If so, please provide full details including length of dependency

Employment Client Spouse / Partner

Employment status

Employed / Self-Employed / Unemployed / Retired

Occupation (if applicable)

Annual Salary before tax (GBP) £ £

If employed, does their employer offer a pension?

If a scheme is available, are they a member?

If yes, what contributions do they and their employer make?

If no, why have they not joined this scheme?

* Please also include full details of this pension in the ‘existing pensions’ section


❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No


❑ Yes ❑ No ❑ N/A ❑ Yes ❑ No ❑ N/A

❑ Employed❑ Self-Employed

❑ Unemployed ❑ Retired

❑ Full Time ❑ Part-Time

❑ Employed❑ Self-Employed

❑ Unemployed ❑ Retired

❑ Full Time ❑ Part-Time

❑

No Spouse or Partner ❑ Separately

❑

Page 3 of 15

Current Monthly Income after tax (GBP) please convert if not provided in GBP

Client Spouse / Partner Source

Employment Income £ pm £ pm

Other Pension Income (Defined Benefit only) £ pm £ pm

Rental Income £ pm £ pm

Investment Income £ pm £ pm

Other Income £ pm £ pm

Total Income £ pm £ pm

Does the client or spouse/partner plan to phase retirement (i.e. reduce hours)? If so, at what age and on what income?

Tax Position Client Spouse / Partner

What level of income tax does the client (and spouse/partner) currently pay? _________% ________%

What level of income tax do they expect to pay in retirement? _________% ________%

Is tax planning one of your considerations for transferring? If yes, provide full details

Is the client UK Domiciled?

Is IHT planning a consideration for the client? If yes, please provide details

Expected Income in Retirement after tax (GBP) please convert if not provided in GBP

THIS EXCLUDES THE PENSIONS WE ARE REVIEWING

Income in £ per month

Client Source From Age

Spouse or Partner

Source From Age

Other Pension Income (DB only)

UK State Pension

Rental Income

Investment Income

Other Income

Total Income £ £

A state pension forecast can be obtained online at https://www.gov.uk/check-state-pension For PAS to take this into account, we must be provided with a copy of the state pension forecast


❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

Page 4 of 15

https://www.gov.uk/check-state-pension

Joint Monthly Expenditure (GBP) please convert if not provided in GBP

Now In Retirement On First Death Is this essential?

Mortgage / Rent £ pm £ pm £ pm

Loans / Credit Cards £ pm £ pm £ pm

Council Tax £ pm £ pm £ pm

Water £ pm £ pm £ pm

Gas / Electric £ pm £ pm £ pm

Phone / Internet / TV £ pm £ pm £ pm

TV Licence £ pm £ pm £ pm

Mobile Phone £ pm £ pm £ pm

Food £ pm £ pm £ pm

Car Costs £ pm £ pm £ pm

Holidays £ pm £ pm £ pm

Clothing £ pm £ pm £ pm

Insurance £ pm £ pm £ pm

Hobbies / Eating Out £ pm £ pm £ pm

Birthdays / Xmas £ pm £ pm £ pm

Children / Grandchildren £ pm £ pm £ pm

Other £ pm £ pm £ pm

Total Expenditure £ pm £ pm £ pm

Joint Income vs Expenditure (GBP) please convert if not provided in GBP

What is their desired monthly income level BEFORE TAX ‘in today’s terms’ (from all sources) in retirement? £ pm

Does the client expect their desired income level to reduce in the future? If yes, please provide the percentage change and at what age

Do they feel that there would be an income shortfall in the event of either of their deaths? If yes, please provide details

If they were unable to meet their desired income level in retirement, how would this make them feel? Answer with the client’s own words


❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

Page 5 of 15

Joint Current Assets (GBP) please convert if not provided in GBP

Asset Class Owner Provider Asset Type (e.g. Rental property or ISA)

Value (£) What, if any, income does this asset provide?

Main Residence N/A N/A

Other Property N/A

Bank / Deposit Accounts

Investments

Other

Total £ £

Do they have plans to use any of these above assets to help fund their retirement? If so, please provide details

Do they plan to downsize their main residence in retirement? If so, how much equity would this release?

Do they have any capital expenditure planned, now or in retirement? If so, provide details, amounts and at what age

Do they foresee any changes in their financial circumstances? (e.g. an Inheritance) If so, provide details


❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

Page 6 of 15

Current Liabilities

Liability Owner Provider Term or End Date

Monthly Payment (£)

Interest Rate (%)

Current Balance (£)

Mortgages (Repayment)

Mortgages (Interest Only)

Loans

Credit Cards

Other

Total £ £

Do they have plans to pay off any of these liabilities using their existing pensions or other assets, when they retire? If so, please provide full details


❑ Yes ❑ No

Page 7 of 15

Client

Existing Pensions – Defined Benefit

Employer Status Estimated CETV

Scheme Retirement Age (SRA)

Estimated Pension at SRA

Spouse’s Pension

Is this being reviewed by PAS?

EXAMPLE

Barclays Deferred £500,000 65 £20,000 pa 50% YES

If any of the above are not being reviewed by PAS, provide full reasons?

Existing Pensions – Defined Contributions / Personal Pensions

Provider Type Status Current Payment

Fund Value

Funds Invested Any guarantees?

EXAMPLE

Standard Life Personal Pension

Active £50 pm £58,000 100% MyFolio Cautious

None


Page 8 of 15

Spouse / Partner

Existing Pensions – Defined Benefit

Employer Status Estimated CETV

Scheme Retirement Age (SRA)

Estimated Pension at SRA

Spouse’s Pension

Is this being reviewed by PAS?

EXAMPLE

Barclays Deferred £500,000 65 £20,000 pa 50% YES

If any of the above are not being reviewed by PAS, provide full reasons?

Existing Pensions – Defined Contributions / Personal Pensions

Provider Type Status Current Payment

Fund Value

Funds Invested Any guarantees?

EXAMPLE

Standard Life Personal Pension

Active £50 pm £58,000 100% MyFolio Cautious

None


Page 3 of 15

Page 9 of 15

Lifetime Allowance and HMRC Protection

Is the client’s current total pension value above the current lifetime allowance of £1,055,000*?

Has the client applied for any form of transitional protection? If so, please provide type and value of protection

Is the client aware that by transferring their defined benefit pension, this will likely increase the value assessed against the lifetime allowance?

Is exceeding the lifetime allowance, along with the resultant charges, a concern for the client? Provide client reasons for the answer in their own words

CETV Client

Is the client aware of the basis on how CETVs are calculated?

In relation to the benefits being given up, does the client feel that the CETV is…..

In the client’s own words, why do they have this opinion?

Does the client understand that the CETV could increase in the future, as well as decrease?

*2019-2020 LTA


❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Yes ❑ No

❑ Attractive ❑ Fair Value ❑ Poor Value

Page 10 of 15

Risks and Awareness

A transfer comes with a number of different risk factors. Please confirm understanding of these risks

by the client and provide ‘in their own words’ why they are willing to accept these risks following a

transfer:

Market Risk

Whereas your Defined Benefit Pension offers a secure ‘guaranteed’ level of income for the rest of your life, your pension fund following a transfer may be subject to market risk. This means that the value of your pension fund can go down as well as up. If the value of your pension does fall, this may affect your ability to maintain the level of income you wish to take.

Longevity Risk (shortfall risk)

Following a transfer, there is no guarantee that the pension fund will be sufficient to provide an income for the rest of your life. If you take a higher level of income than is sustainable, if you live longer than expected or if your fund falls due to investment risk, there is a real possibility that your pension fund could run out. In contrast, your Defined Benefit pension is guaranteed to provide a specified level of income for the rest of your life.

Volatility Risk and Sequence of Returns Risk

Following a transfer, the value of your pension fund may go up and down. The higher the level of risk taken, the more it will fluctuate in relation to market conditions. This may mean that the fund value is lower than expected at the point you may wish to access it. The timing of any withdrawals you make may impact the long- term sustainability of your pension fund. If for example, you withdrew a lump sum following a drop in fund value, this would have a negative effect, as the amount withdrawn would not have chance to recover. A Defined Benefit Pension comes with no volatility or sequence of returns risk.

Inflation Risk

Following a transfer, there is a risk that your pension fund, or the income you take from this may not keep pace with inflation and may reduce in ‘real terms’. Your Defined Benefit Pension will likely offer an escalating or ‘inflation linked’ income to protect you from this risk

Annuity Rate Risk

If you intend to purchase an annuity in the future, there is a risk that annuity rates may be lower than they are now, and you would be unable to secure the level of income that you require. The fund may also have been eroded due to investment risk, meaning that there is less available to purchase an annuity. Your Defined Benefit pension is not subject to annuity rate risk.

Currency Risk

If you transfer and invest in overseas funds or funds which trade in a foreign currency, there is a risk that your portfolio returns would be negatively affected by currency fluctuations. There is also additional currency risk where the invested funds are in a denomination different to that which you are withdrawing an income in. As a DB scheme does not come with investment risk, this removes the investment related currency risk.

Behavioural Bias

The introduction of pension freedoms and the increase in CETVs has led to people making short term decisions that may lead to longer term regret. If someone is offered a significant lump sum now rather than a regular income for the rest of their life, there is sometimes a conscious or subconscious bias towards taking the lump sum, without giving full consideration to the long-term consequences.

Have the above risks been fully explained to the client and does the client fully understand the impact of each risk factor?


❑ Yes ❑ No

Page 11 of 15

Why is the client happy to transfer despite the above risks? (client’s own words)

How does the spouse/partner feel about the pension being transferred despite the above risks? (spouse/partner’s own words)

Capacity for Loss Client

What level of investment experience does the client have?

What experience has the client had, to justify this view? Use client’s own words

What importance do the pensions being reviewed have in the client’s retirement income plans?

Does the client have other assets that could be used to fund their retirement income?

How would the client feel in the event of a significant (20-50%) drop in the value of their pension fund? Use clients own words


❑ Yes ❑ No

❑ High ❑ Medium ❑ Low ❑ None

❑ High ❑ Medium ❑ Low ❑ None

Page 12 of 15

Client Priorities From the list below, please prioritise the top five objectives with the client

Objective Priority (1-5)

Why has client rated it at this level?

Certainty of pension benefits / Guaranteed Income

Income

Taking or maximising Tax-Free Cash

Provision of a spouse’s pension

Provision of lump sum death benefits / Providing a legacy

Ability to retire early

Flexibility to vary and control retirement income

Tax planning in retirement

Consolidation of pension funds

Break ties with scheme (e.g. due to deficit)

Opportunity for investment growth

Currency consideration / minimising currency risk


In their own words, what does the client(s) want from their retirement and beyond?

What does their wish list look like? e.g. a new car / a retirement cruise / security / to pass on a legacy

Can the client(s) needs and objectives be met by their Defined Benefit Scheme? If not, why not?


Declaration

Client

• I have reviewed this document in full and confirm that it is a true reflection of my currentsituation, future plans and views on retirement

• I fully understand and assume liability for any incorrect, misleading or missing information,that may have an impact on the advice being given regarding the suitability of transferring myDefined Benefit Pension(s)

Client ………………………………………………(Sign here) Date ………./………/……………

Spouse / Partner ………………………………………………(Sign here) Date ………./………/……………

Adviser

• I have reviewed this document in full and am happy that it is a true reflection of the client’s current situation, future plans and views on retirement, based on our discussions

• I fully understand that any incorrect, misleading or missing information may have an impact on the advice being given regarding the suitability of transferring my client's Defined Benefit Pension(s)

Adviser ………………………………………………(Sign here) Date ………./………/……………


Documents

Client(s) Needs, Aims and Objectives · Client(s) Needs, Aims and Objectives Please provide full and thorough reasons why the client(s) wishes to consider the transfer of their