How this tool can help you
The use of fund-specific growth rates in illustrations is helpful in giving your clients a realistic view of what their pension funds could be. However, we understand that they can make a like-for-like comparison of charges under different products a challenge for you.
For example, if one company is illustrating using 7% assumed investment growth and the other is using 6%, that difference is likely to have a much greater effect on the illustrated benefits than any difference in charges. In some cases, two companies will use different growth assumptions for the same funds, which makes a comparison of illustrated maturity values even less useful in choosing between them.
And that’s where our comparison tool can help.
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What the tool does
The Retirement Account Comparison Tool provides a comparison of illustrated values between providers using consistent growth assumptions. It does this by calculating an effective reduction in yield for an existing policy or a new policy with another provider and applying that to the growth rate assumed in the Retirement Account illustration. It shows which product is likely to produce the higher pension on consistent growth assumptions.
The level of charges is the single most common reason for the FSA to deem a pension transfer unsuitable. This tool helps the challenge caused by the move to fund-specific illustrations.
Benefits
The comparison tool:
- Offers a comparison of illustrated maturity values between providers using consistent growth assumptions, giving a like-for-like comparison
- Provides access to Governed Investment Strategies, Scottish Widows’ insured fund range including external fund links and fund supermarket funds for comparison
- Produces a comparative table for client’s existing plan and Retirement Account showing
- reduction in yield
- estimated maturity value
- Generates comparisons for both individuals and multiple clients
- Displays all details for both existing pension contract and a transfer to Retirement Account
- Enables you to import and export functionality for ease of administration around multiple cases.
