Lloyds Bank is one of the first banks in the market to offer private banking clients such in-depth analysis of their potential income when they retire, in response to the introduction of the new pension freedom rules.
Since 6 April 2015 those looking to retire have a lot more options available to them relating to their pension pot. However, savers still need to take into account the ongoing responsibilities and issues such as tax impacts, longevity, income sustainability, security of income and investment risk when considering how to generate capital and/or income tax efficiency.
The financial planning tool created by Voyant and customised by Lloyds Bank Private Banking has been designed to meet clients’ needs when creating a personalised financial plan which draws together all the key considerations. It enables advisers to engage clients early into retirement planning process and helps them understand the immediate impact specific planning decisions will have on their income in retirement. It brings to life all the complicated planning calculations by building a lifetime picture of a client’s current position as well as illustrating how any recommendations made alter that picture.
The financial planning tool also features daily fund data from Morningstar, which provide portfolio value and the ability to analyse asset class exposures across investments, and a record of psychometric testing to map investment portfolios to the investment risk level appropriate to the client.
Clients will spend time with their adviser to provide a full picture of their financial position including all their assets such as pensions, savings and investments. Discussion around expenditure trends is also incorporated to ensure a realistic analysis is captured.
A client’s information is combined to include their aspirations and future financial requirements to provide a bespoke lifetime financial plan, this outlines the client’s financial position at retirement and beyond.
Richard Anderson, Head of Pensions Policy at Lloyds Bank Private Banking comments:
“Financial Planning is vital for anyone looking for a sustainable income in retirement. By using financial planning tools at an early stage in the process savers will have more insight and understanding of their finances not just at the point of retirement but beyond.”
