Mike Morrison Pensions Strategy Manager

Mike MorrisonPensions Strategy Manager

Interactive session

1) Would not have used it anyway

2) No longer a viable option

3) May have some use in limited cases

4) A very useful financial planning tool

In light of the changes to the tax regime for ASP in the last budget, how do you view ASP?

prepare to vote10

Interactive session

Would not have used it anyway

No longer a viable option

May have some use in limited cases

A very useful financial planning tool

In light of the changes to the tax regime for ASP in the last budget, how do you view ASP?

25% 25% 25%25%

0%

25%

50%

75%

100%

0%

25%

50%

75%

100%

Agenda

• Budget announcements on ASP/Scheme Pension

• Protecting pension funds following the budget

• SIPP regulation

• Other retirement issues

Budget 2007

• Unauthorised payment

• Consultation on Scheme Pensions

• Protecting pension funds

Introducing the clients

Introducing the clients

Introducing the clients

Introducing the clients

Introducing the clients

Pension fund = £750,000

Pension fund = £750,000

Pension fund = £750,000

Pension fund = £750,000

Retirement planning

Source: Annuity Bureau. Annuity Income – gross annual income for man aged 65 with pension fund of £100k. Income payable with 3% p.a. increase, 50% partner pension, guaranteed period of 5 years. Gilt Yield is FT Actuaries Govt Sec UK 15 Year Gilt Yield. Source: FT

Retirement planning

Retirement planning

Retirement planning

Retirement planning

Retirement planning

Retirement planning

Retirement planning

Unsecured Pension

Retirement planning

Retirement planning

Tax charge - 18%

Retirement planning

tax charge - 18%

Retirement planning

Alternatively Secured Pension

Retirement planning

Alternatively Secured Pension

Retirement planning

Annuity purchase eventuallyAlternatively Secured Pension

Retirement planningDetailed financial planning

Alternatively Secured Pension Annuity purchase eventually

Retirement planning

3rd party contributions

Alternatively Secured Pension

Annuity purchase eventually Detailed financial planning

Scheme pensions

• Consultation paper out in budget

• Unfavourable tax treatment

• Likely to be treated as ASP

Other retirement issues

• Discretionary bypass trust

• Protected rights

• Recycling

• Inflation

SIPP Regulation

• From 6 April 2007

• Cost comparison easier

• Some providers not yet regulated

• Orphan SIPPs

SIPP Regulation

Other issues we could have talked about

• Pension Term Assurance

• Employer contributions

• Transfers

• Protecting pre-A-Day tax free cash

• Personal accounts

Other issues we could have talked about

• Pension Term Assurance

• Employer contributions

• Transfers

• Protecting pre-A-Day tax free cash

• Personal accounts

…look out for future workshops

Interactive session

1) Would not have used it anyway

2) No longer a viable option

3) May have some use in limited cases

4) A very useful financial planning tool

prepare to vote10

In light of the changes to the tax regime for ASP in the last budget,

how do you view ASP?

Interactive session

In light of the changes to the tax regime for ASP in the last budget, how do you view ASP?

Would not have used it anyway

No longer a viable option

May have some use in limited cases

A very useful financial planning tool

0%

25%

50%

75%

100%