Alzheimer ScotlandYour Retirement and Life Assurance Provision

19 May 2015

Agenda

Retirement

Life Assurance

Retirement – Sources of Income

Retirement Income

State Pension Benefits

Pension Funds

Other savings/income

Saving for retirement – essential questions

1. What if I don’t save for retirement?

2. When do I want to retire?

3. How do I want to live in retirement?

4. Will I be able to retire?

5. Can I, and do I want to save for retirement?

What if I don’t save for retirement?

Retirement Income

State Pension Benefits

£0

£0

When? Male or female When were you born No earlier than State Pension Age

How much? Number of years you have paid National Insurance Contributions

(NIC)

www.gov.uk/calculate-state-pension

Key questions and where to get the answersState Pension Benefits

Alzheimer Scotland Group Personal Pension Plan (GPP)

Benefits – When & What?

Contributions – How much?

Investment – Which fund(s)?

Benefits - When?

Earliest date you can take your Alzheimer Scotland Pension Plan benefits:

Currently age 55 Increasing to 57 from 2028 Thereafter, no earlier than 10 years before State Pension Age

Selected Retirement Age You choose – if not, default age 65 Annual Plan statement benefits projection Sets date for lifestyle investments

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Benefits – What?

Your Alzheimer Scotland Pension Fund

Cash 25% tax -free

+ Pension

Cash 25% tax-free + 75%

taxable

Drawdown – each payment 25% tax-free, 75% taxable

Pension

Cash -25% tax-free +

taxable drawdown

Retirement Options – Support

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Current Financial Adviser

At Retirement – Alzheimer Scotland

Adviser Facility

Local IFA (www.unbiased.co.uk)

At Retirement - Guaranteed Guidance

Benefits – What?

Contributions Investment Returns

Your Alzheimer Scotland

Pension Fund

Contributions - How it works?

Standard Life

Employer Contribution –

10%

Employee Contributions - Min

3% (x80%)

Tax Relief (20%)

Contributions – Alternative Salary Exchange Option

You agree your future basic salary be reduced by the amount of your gross pension contribution.

The Company pay this contribution into your pension before any income tax & NI is deducted.

All of your pension contribution must be exchanged

All contributions are paid to Standard Life as an employer contribution

Contributions - Net pay versus salary exchange comparison

Net Pay Salary Exchange Impact

Basic Gross Salary £20,000 £19,400 £600 exchanged

Tax £1,880 £1,760

NI £1,432 £1,360

Employee pension contribution* £480 £0 Exchanged

Net Pay £16,208 £16,280 £72

Employer pension contribution + £2,000 £2,600

Total pension contribution £2,600 £2,600

Example: Sally Support earns £20,000 pa with 3% contribution

*Net: 20% tax relief added by Standard Life (£120). Higher tax payers claim relief through self assessment + Employer contribution is 10% of basic payBased on tax and NI rates for the 2015/16 tax year

Key questions and planning support

1. When - Am I saving enough?

2. Lifestyle - Am I saving enough?

3. Ability - Am I saving enough?

4. Capability – Can I/will I save enough?

Potential Reward

Risk

Risk vs. Reward

Cash

Specialist Equities

Equities

Property

Bonds

Investment - Options

Self InvestmentCautious Balanced Adventurous

You can choose an investment approach that reflects your personal attitude to risk and reward

Default option

Investment - Options

1. Default Investment Option - Lifestyle Strategy - Standard Life Cautious Managed II Profile

2. Alternative Standard Life lifestyle strategies - Refer to their investment guide

3. Select your own funds - Range of over 200 funds available from Standard Life. Externally managed funds - may be an additional charge.

Useful linksRisk Profiler: https://www.standardlife.co.uk/c1/guides-and-calculators/assess-your-attitude-to-risk.pageFund guide: http://library.standardlife.com/gpen4.pdf

Investment – Plan Default Option

Source: Standard Life

Annual Management

Charge for Default – 0.57%

Investment & Administration - Standard Life Online Services

Access individual policy details and update View contributions Valuation of your policy Switch funds Projections Access to tools and calculators

Registration process:

https://www.standardlife.co.uk/1/site/uk/register Follow online instructions

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Planning For Your Retirement – Summary Considerations

www.gov.uk/calculate-state-pension

Individual annual benefit statement www.standardlife.co.uk/c1/guides-and-calculators/pension-calculat

or

Previous employers pension schemes or individual pension policies www.pensiontracingservice.com

Other savings and/or income available on retirement ?

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State Pension Benefits

Your Alzheimer Scotland

Pension Fund

Other Pension Funds

Other Savings/Income

What happens if….I die before taking my retirement benefits?

The funds returned to your nominated beneficiary(ies) as a tax free lump sum

Nomination forms available from Standard Life’s website

No completed nomination – Standard Life consider all potential beneficiaries before paying out benefits

Change of personal circumstances/nomination - Inform Standard Life to ensure your funds are distributed in line with your wishes.

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What happens if….I leave Alzheimer Scotland?

Options available:

1. Transfer your funds to another registered pension arrangement

2. Continue to make personal contributions to the Plan

3. Suspend contributions and restart later

4. Make no further contributions and leave funds invested until you take benefits

You will not be entitled to a refund of contributions if you leave the Plan.

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Life Assurance – Nominating Your Beneficiaries

Trustees – Alzheimer Scotland

Trustees discretion to whom benefit payable = exempt from Inheritance Tax

Nomination Form available from Trustees

Completion supports payment of benefits with minimum delays

Complete updated form if circumstances/wishes change

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Life Assurance Insurer AvivaWhen am I eligible? All permanent employees aged 16 – 75When can I join? On commencement of employmentHow do I join? Automatically includedWhat do I pay? Nothing, full cost met by Alzheimer ScotlandBenefit Lump sum = 3 x your earnings (before salary exchange) subject

to a minimum of £5,000Contract workers – annual basic salarySeasonal – total earnings declared in tax year before death

When is it paid? In the event of your death as a permanent employee of Alzheimer Scotland

Who is this paid to? Your nominated beneficiaries, at Trustees discretion

Is this a taxable benefit? No, exempt from Inheritance Tax

When does cover cease? Earlier of employment ceasing with Alzheimer Scotland or attainment of age 75

Questions

?

Disclaimer

The contents of this presentation are confidential and not for onward distribution. Disclosure to third parties cannot be made without the prior written consent of Mazars Employee Benefits Limited.

The information presented does not constitute advice.

It is based on our current interpretation of UK legislation and HMRC practice at the date of production. This may be subject to change in the future and any tax rates or reliefs may be altered. Professional advice should be sought prior to making any decision and Mazars Employee Benefits Limited will not accept responsibility for decisions taken solely on the basis of the information presented. Some services offered by Mazars Employee Benefits Limited are not regulated by the Financial Conduct Authority.

Mazars Employee Benefits Limited is an Appointed Representative of Mazars Financial Planning Limited which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales No. 03893679 with its registered office at Tower Bridge House, St Katharine’s Way, London, E1W 1DD.

Mazars Employee Benefits Limited and Mazars Financial Planning Limited are both wholly owned subsidiaries of Mazars LLP, the UK firm of Mazars, an integrated international advisory and accountancy organisation