Phased Income Drawdown Calculators
The need for flexibility in retirement planning has never been greater for your clients. Prudential's Flexible Retirement Plan (FRP) allows a tailored approach to planning the best route for your client's retirement needs. For those clients where there is no immediate need for the full tax free cash amount, phased Income Drawdown may be a suitable approach.
With phased Income Drawdown a combination of your client's tax free cash and income is used to provide the required overall income. Using this approach means that only the amount required to provide the overall income needed is vested from your client's Personal Pension into Income Drawdown and the remainder of their fund stays invested under their personal pension plan. The benefits of this approach are:
- The ability to maximise death benefits - In the event of death the Personal Pension element is not subject to the 35% tax payable on the Income Drawdown element
- The initially unused tax free cash can be taken out at any time and will benefit from any growth on the personal pension fund
- It keeps more of your client's funds in a tax efficient environment
- A tax efficient income - it's part tax free cash
- Ideal for those clients who are retiring gradually and who are still working and earning
Please note that phasing is not automatic under the FRP.
The following Phased Income Drawdown Calculators have been created:
1. To demonstrate how phased Income Drawdown works in principle.
And
2. To calculate the fund that needs to move from your client's existing Personal Pension to Income Drawdown to maintain their overall income requirement.
These Calculators require Microsoft Excel (version 97 or later)
Both these tools allow for targeting of either total gross or net income and allow flexibility in the growth rates and gilt yields used. This flexibility allows you to model the impact of different scenarios.
Terms of Use
1. In the Terms of Use 'The Software' means all software (excluding Microsoft Excel) and other materials contained within the calculators.
2. Microsoft Excel is a registered trademark of the Microsoft Corporation.
3. Copyright and all other intellectual property rights in respect of The Software is, and shall remain at all times, in the ownership of Prudential.
4. The Software shall be for your own use and shall not be given, sold, loaned to or allowed to be used by any person not employed by or contracted to you.
5. You may make one copy of The Software for security back up purposes. These conditions shall apply to any copy made.
6. You must not decompile, reverse engineer or otherwise tamper with The Software contained within the calculators.
7. We may, from time to time, issue amended or updated versions of The Software. Should this occur, this will then become the current version of The Software at any time.
8. Prior to release of this file, we have carried out virus checks using up-to-date virus-checking software. We do however recommend that you carry out such checks as you consider appropriate prior to using these calculators. We cannot be held responsible for any loss or damage caused by the continued presence of a virus which has not been detected by the virus checking software.
9. The Software has been prepared in accordance with our understanding of the Guidelines of the Financial Services Authority and current HM Revenue & Customs legislation and practice, as at November 2009, all of which is liable to change without notice.
10. We have applied care and skill to produce The Software to a professional standard. However, we cannot guarantee that The Software is free of errors or omissions, nor can liability be accepted for any losses, howsoever incurred, arising from the use of The Software.
