BWiser - Pension Tax Simplification Modeller and Report
Are you prepared for A-Day? Do your executives or clients know if they should opt our of pension provision on A-Day?
With under a year to go until the new pensions regime comes into force, Barnett Waddingham is pleased to announce the formal launch of BWiser. This is accompanied by a new web-site, www.bwiser.co.uk, and a series of demo work-shops for advisers across the country.
In response to the complexity of the new regime being introduced from 6 April 2006, 'A-Day', Barnett Waddingham has developed BWiser. It is a sophisticated modeller and report service that analyses the impact of the new pension tax regime, helping executives, their advisers and employers to address the important A-Day pensions decisions. In particular, the modeller will be invaluable in considering protection routes at A-Day, funding scope pre A-Day and benefit options beyond A-Day. The service is designed for companies in relation to their executives and advisers in relation to their clients.
Find out more at www.bwiser.co.uk
The modeller first shows the individual's funding position at A-Day, relative to the Lifetime Allowance, providing an indication of the initial impact of the Lifetime Allowance. It also shows the anticipated scope for any further pension funding prior to A-Day.
To identify the potential impact of the Lifetime Allowance in future years, the second graphic illustrated below shows the amount of the individual's benefits relative to the Lifetime Allowance for a range of future retirement dates. This takes into account any early retirement penalties that apply and assumes that pension accrual or contributions continue as at present.
The third graphic shows the comparative value, after tax, of retirement benefits for a range of future retirement dates under three scenarios:
- Current pension accrual/contributions remain unchanged
- Enhanced protection is claimed, and future retirement savings after A-Day are made outside of tax approved pensions
- Current pension accrual/contributions remain unchanged, but ceases early, with retirement savings thereafter being made outside of tax approved pensions
This highlights whether Enhanced Protection should be sought and, if not, whether future build up of pension benefits should be limited so as to reduce the lifetime allowance charge.
The final graphic shows a detailed breakdown at selected ages of the results from the third graphic, throwing further light on the potential relative values of each of the scenarios.
For each case, multiple runs are available to consider different scenarios, such as alternative financial assumptions, various levels of pre A-Day funding and a range of opt out dates. The modeller can handle just about any combination of past and current pension arrangements that an executive can have. Once the executive's personal and pension details have been established, including any alternative remuneration/saving strategies available in response to the new pension tax legislation, the key financial assumptions can be set.
BWiser for Companies
For companies, BWiser can initially provide the modelling tool so that the impact of the new regime can be assessed for executives and appropriate alternative remuneration structures can be investigated.
Once an alternative remuneration policy has been agreed, BWiser can then be used to analyse the position for each executive. BWiser's comprehensive service for executives includes a face to face review and report to help your executives consider their vital pre A-Day planning options, protection options at A-Day and any benefit options open to them at A-Day and beyond.
To find out more about BWiser, visit www.bwiser.co.uk. The structure of the service is flexible, and if you wish to discuss your particular needs, please contact:
Marcus Whitehead on 01494 788100
BWiser for Advisers
For advisers, the web interface can be used to access BWiser and to e-mail preliminary reports for initial client discussions. Various scenarios can be considered and the results on a chosen scenario can be set out in a bespoke full written report, signed off by one of our actuaries. This full report will include the results from the modeller and a summary of the issues that need to be considered in the light of the new legislation. The report will be addressed to you as the adviser, and can then be used as the basis of your 'A-Day' advice to your clients.
To find out more about BWiser, visit www.bwiser.co.uk
If you wish to discuss your particular needs, please contact:
Marcus Whitehead on 01494 788100
- BWiser -
Barnett Waddingham LLP is a limited liability partnership registered in England and Wales, Registered No. OC307678.
Regulated by the Institute of Actuaries in respect of a range of investment business activities.
Marcus Whitehead, May 2005.