Client Fact-Find
Client Name
Adviser
Introducing Firm
Date Completed
Client(s) Needs, Aims and Objectives
Please provide full and thorough reasons why the client(s) wishes to consider the transfer of their defined benefit pension? Using the client’s own words, summarise their specific retirement objectives and explain why they feel that these can be met best by transferring their ‘valuable’ defined benefit scheme.
At what age does the client plan to retire?
At what age does the client plan to access the pension being reviewed?
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416. Page 1 of 15
Personal Details Client Spouse / Partner
Surname
First Name
Title
Date of Birth (Age) ( ) ( )
National Insurance Number
Nationality
Country of residence for tax purposes
Date moved from UK
Marital Status
Do they plan to move or return to another country? If yes, details?
Address
Contact Number(s)
E-mail address
Health / Longevity Client Spouse / Partner
State of Health Good
Does the client, or has the client ever suffered any medical conditions that they feel may affect their life expectancy? If yes, provide full details
Does the client have any reason to believe that the longevity or medical history of their family will impact on their life expectancy? If yes, provide full details
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
❑ Yes ❑ No
❑ Yes ❑ No ❑ Yes ❑ No
❑ Yes ❑ No ❑ Yes ❑ No
❑ ❑❑ PoorReasonable Good ❑❑ PoorReasonable❑
Page 2 of 15
Dependents Client
Does the client view their finances jointly or separately?
Jointly
If applicable, does the client consider their spouse / partner to be dependent on their income at this current time? If no, please provide full details why
Will their spouse /partner be dependent on their income in retirement? If no, please provide full details why
Does the client and/or their spouse / partner have any children If so, please provide name, age and period of dependency (if any) for each child
Do they have anyone else that is financially dependent on them? If so, please provide full details including length of dependency
Employment Client Spouse / Partner
Employment status
Employed / Self-Employed / Unemployed / Retired
Occupation (if applicable)
Annual Salary before tax (GBP) £ £
If employed, does their employer offer a pension?
If a scheme is available, are they a member?
If yes, what contributions do they and their employer make?
If no, why have they not joined this scheme?
* Please also include full details of this pension in the ‘existing pensions’ section
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No ❑ Yes ❑ No
❑ Yes ❑ No ❑ N/A ❑ Yes ❑ No ❑ N/A
❑ Employed❑ Self-Employed
❑ Unemployed ❑ Retired
❑ Full Time ❑ Part-Time
❑ Employed❑ Self-Employed
❑ Unemployed ❑ Retired
❑ Full Time ❑ Part-Time
❑
No Spouse or Partner ❑ Separately
❑
Page 3 of 15
Current Monthly Income after tax (GBP) please convert if not provided in GBP
Client Spouse / Partner Source
Employment Income £ pm £ pm
Other Pension Income (Defined Benefit only) £ pm £ pm
Rental Income £ pm £ pm
Investment Income £ pm £ pm
Other Income £ pm £ pm
Total Income £ pm £ pm
Does the client or spouse/partner plan to phase retirement (i.e. reduce hours)? If so, at what age and on what income?
Tax Position Client Spouse / Partner
What level of income tax does the client (and spouse/partner) currently pay? _________% ________%
What level of income tax do they expect to pay in retirement? _________% ________%
Is tax planning one of your considerations for transferring? If yes, provide full details
Is the client UK Domiciled?
Is IHT planning a consideration for the client? If yes, please provide details
Expected Income in Retirement after tax (GBP) please convert if not provided in GBP
THIS EXCLUDES THE PENSIONS WE ARE REVIEWING
Income in £ per month
Client Source From Age
Spouse or Partner
Source From Age
Other Pension Income (DB only)
UK State Pension
Rental Income
Investment Income
Other Income
Total Income £ £
A state pension forecast can be obtained online at https://www.gov.uk/check-state-pension For PAS to take this into account, we must be provided with a copy of the state pension forecast
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
Page 4 of 15
Joint Monthly Expenditure (GBP) please convert if not provided in GBP
Now In Retirement On First Death Is this essential?
Mortgage / Rent £ pm £ pm £ pm
Loans / Credit Cards £ pm £ pm £ pm
Council Tax £ pm £ pm £ pm
Water £ pm £ pm £ pm
Gas / Electric £ pm £ pm £ pm
Phone / Internet / TV £ pm £ pm £ pm
TV Licence £ pm £ pm £ pm
Mobile Phone £ pm £ pm £ pm
Food £ pm £ pm £ pm
Car Costs £ pm £ pm £ pm
Holidays £ pm £ pm £ pm
Clothing £ pm £ pm £ pm
Insurance £ pm £ pm £ pm
Hobbies / Eating Out £ pm £ pm £ pm
Birthdays / Xmas £ pm £ pm £ pm
Children / Grandchildren £ pm £ pm £ pm
Other £ pm £ pm £ pm
Total Expenditure £ pm £ pm £ pm
Joint Income vs Expenditure (GBP) please convert if not provided in GBP
What is their desired monthly income level BEFORE TAX ‘in today’s terms’ (from all sources) in retirement? £ pm
Does the client expect their desired income level to reduce in the future? If yes, please provide the percentage change and at what age
Do they feel that there would be an income shortfall in the event of either of their deaths? If yes, please provide details
If they were unable to meet their desired income level in retirement, how would this make them feel? Answer with the client’s own words
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
Page 5 of 15
Joint Current Assets (GBP) please convert if not provided in GBP
Asset Class Owner Provider Asset Type (e.g. Rental property or ISA)
Value (£) What, if any, income does this asset provide?
Main Residence N/A N/A
Other Property N/A
Bank / Deposit Accounts
Investments
Other
Total £ £
Do they have plans to use any of these above assets to help fund their retirement? If so, please provide details
Do they plan to downsize their main residence in retirement? If so, how much equity would this release?
Do they have any capital expenditure planned, now or in retirement? If so, provide details, amounts and at what age
Do they foresee any changes in their financial circumstances? (e.g. an Inheritance) If so, provide details
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
Page 6 of 15
Current Liabilities
Liability Owner Provider Term or End Date
Monthly Payment (£)
Interest Rate (%)
Current Balance (£)
Mortgages (Repayment)
Mortgages (Interest Only)
Loans
Credit Cards
Other
Total £ £
Do they have plans to pay off any of these liabilities using their existing pensions or other assets, when they retire? If so, please provide full details
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
❑ Yes ❑ No
Page 7 of 15
Client
Existing Pensions – Defined Benefit
Employer Status Estimated CETV
Scheme Retirement Age (SRA)
Estimated Pension at SRA
Spouse’s Pension
Is this being reviewed by PAS?
EXAMPLE
Barclays Deferred £500,000 65 £20,000 pa 50% YES
If any of the above are not being reviewed by PAS, provide full reasons?
Existing Pensions – Defined Contributions / Personal Pensions
Provider Type Status Current Payment
Fund Value
Funds Invested Any guarantees?
EXAMPLE
Standard Life Personal Pension
Active £50 pm £58,000 100% MyFolio Cautious
None
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
Page 8 of 15
Spouse / Partner
Existing Pensions – Defined Benefit
Employer Status Estimated CETV
Scheme Retirement Age (SRA)
Estimated Pension at SRA
Spouse’s Pension
Is this being reviewed by PAS?
EXAMPLE
Barclays Deferred £500,000 65 £20,000 pa 50% YES
If any of the above are not being reviewed by PAS, provide full reasons?
Existing Pensions – Defined Contributions / Personal Pensions
Provider Type Status Current Payment
Fund Value
Funds Invested Any guarantees?
EXAMPLE
Standard Life Personal Pension
Active £50 pm £58,000 100% MyFolio Cautious
None
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
Page 3 of 15
Page 9 of 15
Lifetime Allowance and HMRC Protection
Is the client’s current total pension value above the current lifetime allowance of £1,055,000*?
Has the client applied for any form of transitional protection? If so, please provide type and value of protection
Is the client aware that by transferring their defined benefit pension, this will likely increase the value assessed against the lifetime allowance?
Is exceeding the lifetime allowance, along with the resultant charges, a concern for the client? Provide client reasons for the answer in their own words
CETV Client
Is the client aware of the basis on how CETVs are calculated?
In relation to the benefits being given up, does the client feel that the CETV is…..
In the client’s own words, why do they have this opinion?
Does the client understand that the CETV could increase in the future, as well as decrease?
*2019-2020 LTA
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Attractive ❑ Fair Value ❑ Poor Value
Page 10 of 15
Risks and Awareness
A transfer comes with a number of different risk factors. Please confirm understanding of these risks
by the client and provide ‘in their own words’ why they are willing to accept these risks following a
transfer:
Market Risk
Whereas your Defined Benefit Pension offers a secure ‘guaranteed’ level of income for the rest of your life, your pension fund following a transfer may be subject to market risk. This means that the value of your pension fund can go down as well as up. If the value of your pension does fall, this may affect your ability to maintain the level of income you wish to take.
Longevity Risk (shortfall risk)
Following a transfer, there is no guarantee that the pension fund will be sufficient to provide an income for the rest of your life. If you take a higher level of income than is sustainable, if you live longer than expected or if your fund falls due to investment risk, there is a real possibility that your pension fund could run out. In contrast, your Defined Benefit pension is guaranteed to provide a specified level of income for the rest of your life.
Volatility Risk and Sequence of Returns Risk
Following a transfer, the value of your pension fund may go up and down. The higher the level of risk taken, the more it will fluctuate in relation to market conditions. This may mean that the fund value is lower than expected at the point you may wish to access it. The timing of any withdrawals you make may impact the long- term sustainability of your pension fund. If for example, you withdrew a lump sum following a drop in fund value, this would have a negative effect, as the amount withdrawn would not have chance to recover. A Defined Benefit Pension comes with no volatility or sequence of returns risk.
Inflation Risk
Following a transfer, there is a risk that your pension fund, or the income you take from this may not keep pace with inflation and may reduce in ‘real terms’. Your Defined Benefit Pension will likely offer an escalating or ‘inflation linked’ income to protect you from this risk
Annuity Rate Risk
If you intend to purchase an annuity in the future, there is a risk that annuity rates may be lower than they are now, and you would be unable to secure the level of income that you require. The fund may also have been eroded due to investment risk, meaning that there is less available to purchase an annuity. Your Defined Benefit pension is not subject to annuity rate risk.
Currency Risk
If you transfer and invest in overseas funds or funds which trade in a foreign currency, there is a risk that your portfolio returns would be negatively affected by currency fluctuations. There is also additional currency risk where the invested funds are in a denomination different to that which you are withdrawing an income in. As a DB scheme does not come with investment risk, this removes the investment related currency risk.
Behavioural Bias
The introduction of pension freedoms and the increase in CETVs has led to people making short term decisions that may lead to longer term regret. If someone is offered a significant lump sum now rather than a regular income for the rest of their life, there is sometimes a conscious or subconscious bias towards taking the lump sum, without giving full consideration to the long-term consequences.
Have the above risks been fully explained to the client and does the client fully understand the impact of each risk factor?
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
❑ Yes ❑ No
Page 11 of 15
Why is the client happy to transfer despite the above risks? (client’s own words)
How does the spouse/partner feel about the pension being transferred despite the above risks? (spouse/partner’s own words)
Capacity for Loss Client
What level of investment experience does the client have?
What experience has the client had, to justify this view? Use client’s own words
What importance do the pensions being reviewed have in the client’s retirement income plans?
Does the client have other assets that could be used to fund their retirement income?
How would the client feel in the event of a significant (20-50%) drop in the value of their pension fund? Use clients own words
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416.
❑ Yes ❑ No
❑ High ❑ Medium ❑ Low ❑ None
❑ High ❑ Medium ❑ Low ❑ None
Page 12 of 15
Client Priorities From the list below, please prioritise the top five objectives with the client
Objective Priority (1-5)
Why has client rated it at this level?
Certainty of pension benefits / Guaranteed Income
Income
Taking or maximising Tax-Free Cash
Provision of a spouse’s pension
Provision of lump sum death benefits / Providing a legacy
Ability to retire early
Flexibility to vary and control retirement income
Tax planning in retirement
Consolidation of pension funds
Break ties with scheme (e.g. due to deficit)
Opportunity for investment growth
Currency consideration / minimising currency risk
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416. Page 13 of 15
In their own words, what does the client(s) want from their retirement and beyond?
What does their wish list look like? e.g. a new car / a retirement cruise / security / to pass on a legacy
Can the client(s) needs and objectives be met by their Defined Benefit Scheme? If not, why not?
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416. Page 14 of 15
Declaration
Client
• I have reviewed this document in full and confirm that it is a true reflection of my currentsituation, future plans and views on retirement
• I fully understand and assume liability for any incorrect, misleading or missing information,that may have an impact on the advice being given regarding the suitability of transferring myDefined Benefit Pension(s)
Client ………………………………………………(Sign here) Date ………./………/……………
Spouse / Partner ………………………………………………(Sign here) Date ………./………/……………
Adviser
• I have reviewed this document in full and am happy that it is a true reflection of the client’s current situation, future plans and views on retirement, based on our discussions
• I fully understand that any incorrect, misleading or missing information may have an impact on the advice being given regarding the suitability of transferring my client's Defined Benefit Pension(s)
Adviser ………………………………………………(Sign here) Date ………./………/……………
Pension Advice Specialists Limited is Authorised and Regulated by the Financial Conduct Authority under registration number 792927. Pension Advice Specialists Limited is registered in England and Wales under company registration number 10828883. Our registered office is at 1st Floor, Marshall House, 2 Park Avenue, Sale, Manchester, M33 6HE and our VAT registration number is 318145416. Page 15 of 15
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