PENSION REVIEW & ACTION PLAN FOR YOUR RICHERRETIREMENT

THE RICHER RETIREMENT SPECIALISTS

AVANTIS WEALTH PENSION REVIEW & ACTION PLANRetirement means different things to different people. For some, it’s a time for relaxing or taking a well-earned rest after a busy career. For others, it’s an opportunity to travel, spend more time on hobbies or to achieve all the lifetime ambitions still left on their wish list.

Whatever your aspirations one thing is certain – it’s very important to plan ahead. Having a plan is crucial. Many people move into retirement with little or no idea of whether they have sufficient money to fund the lifestyle they dream of. Deciding on the type of retirement you want well in advance is therefore vital.

The sooner you take stock of where you are now and start planning, the more chance you have that your savings, investments and pensions will deliver what you need. And to help you we have produced the Avantis Wealth Pension Review & Action Plan. All the questions you really need to know the answers to, if you’re to achieve your idyllic retirement!

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CONTENTS

CHAPTER 1 – THE PENSION REVIEW

There are three elements to your pension review:

1. THE ISSUES FOR YOU! PG 4

2. THE ISSUES FOR YOUR PROVIDER! PG 6

3. THE ISSUES FOR YOUR ADVISER! PG 7

The questions asked will unlock the truth to whether your retirement plans are on track.

CHAPTER 2 – THE ACTION PLAN

If the pension review has set some alarm bells ringing, then you need an action plan. The sooner you implement your action plan, the better your chances of your idyllic retirement.

1. WHERE ARE YOU NOW? PG 9

2. WHERE DO YOU WANT TO BE? PG 10

3. WHAT IS THE GAP? PG 11

4. WHAT IS YOUR ACTION PLAN? PG 12

5. HOW RICH IS YOUR RICHER RETIREMENT? PG 13

6. SIX PENSION REVIEW CASE STUDIES PG 14

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THE ISSUES FOR YOUAm I contributing enough to meet my retirement goal?

In other words, when do you want to retire and how much income do you need? This is the most important question given that if you don’t put enough into your pension pot, you won’t get as much out. On page 8 we have produced a handy tool to help you do the maths!

What are my future financial needs and how are they going to change?

Think about your living expenses, such as housing and running a car, and how these will change over the next 5, 10, 15 and 20 years. Remember to budget for things like holidays and leisure activities like golf. If you have debts then you may decide to use some of your retirement savings to pay them off, particularly if you are paying high rates of interest on your credit cards for example.

Your financial needs are likely to reduce as you get older and become less active but then your ability to work also reduces. Bear in mind that in later years costs could increase as you may need to pay towards long term care for you or your spouse. You may decide to either downsize or release equity from your home, and this can add substantially to your retirement income.

Should I take a tax-free cash sum?

Many savers choose to take the 25% cash tax free element at age 55. With the new pension freedoms many savers now have access to all of their pension, subject to their marginal rate of income tax over and above the 25% tax free element. While it may be tempting to splash out on the holiday of a lifetime, you could adversely affect the amount of income you have in retirement!

How long will my money have to last?

We now tend to live longer. An average 65 year old in good health is expected to live for another 24 years and one in four people could now live to see their 95th birthday. Our retirement savings are going to have to last us for a very long time – perhaps 30 years or more. Moving your pension arrangements to new opportunities could make a big difference to your lifestyle in retirement.

What other savings do I have?

As well as savings in pension plans you may have other types of savings, for example bank saving accounts, premium bonds or ISAs. It may be better for you to take money from other savings first before drawing from your pension plan. If you own your home you might think about selling or renting it out to fund your retirement but remember you will still need somewhere to live! Other options include equity release which many people who wish to stay in their own home prefer.

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How much will my State Pension be?

Most people will be entitled to an old age pension provided by the State. The amount of this pension is not the same for everyone and will depend on your employment history and when you were born. Remember the State Pension is designed to cover only a very basic standard of living without any luxuries.

What happens when I die?

No one likes to think about dying, but next to taxes it is the other of life’s certainties. If you die before you reach 75, any money left in your pension plan will be paid to your survivors free of any tax. If you die after 75, money paid to your survivors may be subject to tax depending on their circumstances.

Retirement savings which remain in pension plans are not normally counted for inheritance tax purposes. If you buy an annuity then the benefits payable after your death will depend on the terms of the contract with the insurer. For many, providing by way of legacy is as much a consideration, as the income you’ll want during your retirement. Make sure your pension meets your needs and those you love when you’re gone.

Am I being scammed?

If you are considering moving your pension, then take note! Unfortunately there are some dodgy people around who would love to get their hands on your money and some people have already lost most of their retirement savings through scammers. Be very wary if someone is encouraging you to take your retirement savings or invest your money with them. If what they are offering you seems too good to be true, it almost certainly is!

Is now the right time to make a decision?

Time may be against you, if for example you have less than five years to retirement, changing how your pension is invested, could make you worse off. You may be more flexible with your planned retirement age, delaying it by two or three years, when combined with a new investment strategy could make the difference between a comfortable retirement or not!

How often should I do a review?

Once you’ve got a plan, then you need to check it to make sure it’s on track to deliver the retirement income you need. You take your car for an MOT annually, we think you should give your pension plan an annual MOT!

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THE ISSUES FOR YOUR PROVIDERWhat fees am I being charged?

Are you stuck with a large pension provider? Perhaps the biggest issue for old legacy type pension arrangements are fees and charges. You need to know what the annual cost from the pension provider and fund managers’ costs. The higher your fees the greater the impact of your pension fund’s performance!

How are my assets invested?

There could be new investment products available which were not previously, and you should also take stock of your investments and see how it weighs against your risk profile. It might be you want to take more risk to achieve greater growth, or reduce the risk as you approach retirement.

How are my investments performing?

All funds, even the very best, underperform from time to time, but take time to ensure the strategy remains appropriate and the underperformance is a blip, rather than a long-term failure. There are many millions of pounds stagnating in old fashioned with profits life funds. Make sure your pension isn’t one of them!

Are there any guaranteed annuity rates attached or other benefits?

For defined contribution schemes, your provider may guarantee an annuity rate which could provide you with a decent retirement income which you might lose out on if you go elsewhere to buy your annuity. Your pension scheme might also come with other benefits such as life cover.

How much would it cost me to transfer my pension?

For those on defined contribution pensions, switching to a new provider are likely to come with transfer charges, so you should weigh up the charge against the benefit of transferring. Transferring in to a SIPP where annual fees and transaction costs are generally low, can offset any penalty from your current pension provider.

Is my fund being managed actively or passively?

There is much debate whether investments should be passively managed (investments follow a given market index, for example the FTSE100) or actively managed (managers actively control the fund and buy and sell investments on behalf of the fund). Active costs more though there is potential for it to grow more, but the risk is greater of the fund underperforming.

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THE ISSUES FOR YOUR FINANCIAL ADVISERHow much am I paying my adviser?

There have been fundamental changes to the way Financial Advisers charge clients following the Retail Distribution Review (RDR), you should clarify with your Financial Adviser whether you will be charged any extra prior to any review.

Are there any new developments I should be aware of?

The retirement market is currently in a period of transition, with many new products being developed, and rules regarding options such as Annuities and Income Drawdown.

Sweeping new pension freedoms were introduced in April 2015. Even if you feel you have a good understanding of how the retirement market works, it’s a good idea to let your Financial Adviser take you through the latest developments and how they could affect you.

What other options do I have?

Unless your pension fund is heading towards the maximum lifetime allowance of £1 million from April 2016, then you really should know if any other options could transform your income in retirement. Many people choose Self-Invested Personal Pensions or SIPPs, as these often allow greater choice of permitted investments, for example commercial property and other non-traditional assets.

Will any changes in my personal life affect my pension arrangements?

It is important to assess your options in the event of, say, a change in marital status - particularly when it comes to death benefits.

How can I minimise my tax bill?

Most people enjoy a personal income tax allowance each tax year and this usually changes each year. You should think about taking your retirement savings in a way which makes the most use of your personal tax allowance so you don’t have to pay tax unnecessarily. Your Financial Adviser should guide you through this.

Should I buy an annuity?

An annuity is a promise by an insurance company to pay you an income for the rest of your life. You pay the insurance company to give you the certainty of income each month or year – regardless of how long you live or investment performance. Some annuities provide for payments to be made to a surviving spouse or dependant after your death. You should check the terms of the annuity before you commit as they cannot usually be changed afterwards. It is worth shopping around different insurance companies before you buy as prices can vary. With the new pension freedoms, you do not have to buy an annuity, and in many instances it will be beneficial to use the new pension freedoms to secure higher income in retirement. Your Financial Adviser should guide you on whether an annuity is right for you.

Where do I go to get more help?

Moving your retirement savings is a big decision and not one to be taken lightly. If you have any queries, please get in touch with us directly and we’ll be happy to help. If you need independent financial advice we can put you in touch with our preferred IFAs.

ACTION PLAN FOR A RICHER RETIREMENT• Has the pension review set alarm bells ringing?

• Do you have a frozen or underperforming pension?

• Are you disappointed with the return on your savings or investments?

• Are you concerned that your potential retirement income may not be as high as you want or need?

• Or that you need your investments and savings to produce more income right now?

To get to where you want to be you need an action plan. This document can help.

Avantis Wealth does not provide financial or pension advice, but this list of headings can help you analyse your current situation and may help you decide how to move forward.

If you do require individual financial or pension advice please talk to a professional advisor or ask Avantis Wealth for an introduction to a preferred IFA.

We strongly recommend you seek professional advice before entering into any contract.

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1. WHERE ARE YOU NOW?

FF List assets

FF List liabilities

FF List income and sources

F Fixed and variable

F Earned and unearned

FF List expenditure

F Fixed and variable

F Any expenditure which will stop in future years?

FF What is available for saving?

F Trading lifestyle now for lifestyle later

F Do you need to save?

F Do you need to save more?

F How can you do that?

FF What will your current savings and investment

strategy deliver and when?

FF Is that OK?

(If so, stop here!)

Throughout the process Avantis Wealth have been thoughtful, professional, insightful and have been very straight about balancing risk and reward. I’ve been more than pleased with the level of their knowledge and experience.

Dr N Kennedy, Sussex

Thanks for your unfailing support. The customer service your team provides really is exceptional and we appreciate it very much. You are efficient, great communicators and good at what you do. I think that other organisations and individuals could learn a lot from you.

M Robinson, Devon

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2. WHERE DO YOU WANT TO BE AND WHEN? (in income terms)

FF Calculate “need”

(income you must have)

FF Calculate “want”

(income you’d like to have)

FF Is this more than your current strategy will

make possible?

FF How many years before your preferred

outcome has to deliver?

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3. WHAT IS THE GAP?

FF What is the shortfall, between where you expect to

be and where you either want or need to be?

FF Can you bridge the gap with existing resources?

(This may depend on investment performance)

FF If not, where are extra financial resources coming

from? Savings / inheritance / other?

A big thank you to the team at Avantis Wealth for all your assistance in helping me evaluate my pension transfers and helping set up the SIPP. I have no hesitation in recommending you and indeed have done so on three separate occasions already.

P New, Surrey

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4. WHAT IS YOUR ACTION PLAN?

FF More profitable investment strategy?

(Do you understand the available investment

options and what is appropriate? The

difference to current and future income can be

considerable)

FF Identify non-performing investments and

assets, including property. How can you make

the money work harder?

FF Clarify and achieve the correct balance

between income from direct investments with

income from your pension

FF Request a detailed pension review through our

preferred IFA.

FF Does your current pension allow the

investment selections you prefer?

FF Does your current pension enable you to take

control and make investment choices?

(This should only be considered by people that

take an active interest in their investments and

have the time available to do this on a regular

basis)

FF Is your current pension likely to deliver the

income you want?

FF Would an alternative pension wrapper be

appropriate?

(Advice from an IFA, is required to help you

answer this question)

FF Learn about annuities and drawdown as

alternative approaches to taking money from a

pension. Decide what would be best suited to

you

FF Consider increasing your regular or adhoc

savings amount, if available and appropriate

FF Put cash aside for a ‘rainy day’. Many people

consider that 90 days income is a reasonable

target to have. Consider if direct investment

rather than a pension would be appropriate for

this segment of your investments

Want to invest for income now?Do you have poorly performing investments and need to generate the best possible income right now? Then consider investments within our portfolio which offer:

• Up to 15% annual income• Payable quarterly, six monthly or annually• Investment starts at £10,000

Want to build your fund for the future, achieving maximum growth?

Whether you wish to invest directly or through a pension scheme, our investment portfolio offers a wide choice of investment type, location and timescale:

• Investments typically from 1 to 5 years• Returning up to 15% annually• Investment starts at £10,000

Want the benefits of Avantis Wealth Gold membership?

Keep up-to-date by registering as a Gold member on our website at www.avantiswealth.com, there is no cost. Once registered you’ll be sent complimentary special reports, for example ‘Property As Your Pension’, together with our monthly F.R.E.S.H. Investment newsletter and much more!

Do you have a frozen or underperforming pension?

Then request a complimentary pension review. This will show you:

• Value of your fund• Performance over the last 5-8 years• Fees and charges you are incurring• Expected income in retirement

Armed with this information you can explore options to do better.

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5. HOW RICH IS YOUR RICHER RETIREMENT?

FF With these changes what is your new

anticipated income in retirement?

£ _________________________ per annum

£ _________________________ per month

Bear in mind that the value of any investment can go down as well as up and you might not get back what you put in. Some types of investment, e.g. property, may not be readily realisable and may take time to sell in view of the nature of the investment.

FREEPHONE: 0800 612 0880 LANDLINE: 01273 447 299

INVEST@AVANTISWEALTH.COM WWW.AVANTISWEALTH.COM

This Pension Audit & Action Plan has been developed by Rod Thomas FCA, Managing Director of Avantis Wealth Ltd. It is designed as a self-help tool to assist clients in developing their own strategy. It is specifically not a recommendation for any course of action, which can only be provided by an appropriate professional advisor.

FUND INCREASE % INCOME INCREASE %

Client A 395% 216%

Client B 365% 182%

Client C 429% 254%

Client D 412% 235%

Client E 324% 137%

Client F 528% 371%

AVERAGE 408% 232%

SO TAKE THE FIRST STEP TOWARDS YOUR RICHER RETIREMENT AND REQUEST YOUR COMPLIMENTARY PENSION REVIEW TODAY!

AVANTIS WEALTH PENSION REVIEWCASE STUDIESThe following are the six most recent pension reviews results*, a simple representative sample of how you could transform your retirement.

*23 June 2015

THE RICHER RETIREMENT SPECIALISTS

DISCLAIMER

Avantis Wealth Ltd is not authorised or regulated by the Financial Conduct Authority (FCA). This is not a financial promotion or an invitation to invest.

Avantis Wealth Ltd does not provide any financial or investment advice. We provide a referral to a regulated advisor who will offer appropriate advice, or to the company offering an investment who will determine your suitability for the investment prior to any offer being made. We strongly recommend that you seek appropriate professional advice before entering into any contract. The value of any investments can go down as well as up and you might not get back what you put in. You may have difficulty selling any investment at a reasonable price and in some circumstances it might be difficult to sell at any price.

Do not invest unless you have carefully thought about whether you can afford it and whether it is right for you and if necessary consult with a professional adviser in accordance with the Financial Services and Markets Act 2000. These products are not regulated by the FCA or covered by the Financial Services Compensation Scheme and you will not have access to the financial ombudsman service.

This page does not constitute an offer to invest but is for information only. Persons expressing an interest in the bond will receive an invitation document, which they should read and ensure they fully understand prior to making any decision to subscribe. Persons in any doubt regarding the risks associated with investments of this nature should consult a suitable qualified and authorised advisor.

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