Cashflow analysis for Pension Transfer Specialists and Drawdown – Simple. Powerful. Essential.


Lifetime financial cashflow planning is now very simple.

It is no longer the preserve of specialist lifestyle financial planners.

It is now possible to access powerful calculations to compute a detailed financial cashflow plan of the future. It’s a simple input, with a powerful output.

It maps out your financial future, based on your financial needs, objectives and thoughts about your future.

It’s essential.

It’s essential, simple, powerful financial planning for you and your clients.

This simple calculation of your lifetime cashflow can help you answer these questions:

What age can I retire early? Can I work part time and then retire? Can I give my daughter a lump sum to buy a house – or will I need this money later? What investment returns do I need to make sure I never run out of money? How much more do I need to work and/or save to hit my target? How much more can I spend and die leaving nothing behind? What is my essential minimum income I need to earn to survive?

What is my ‘’Enough’’?

Countless ‘what if?’ scenarios

Your lifetime cashflow calculator enables you to chart your progress and imagine your future self now. You can see how much you’ve achieved and where you’re heading.

It means ongoing pension advice.

It means getting the actual facts and bringing the client closer to their future self at every meeting.

This is something now in full focus of the FCA, because it considers (and provides evidence) of every side of the advice coin – particularly those advising PTS role/drawdown:

This is about making sure your clients do not run out of money and managing realistic expectations of spending in the future.

CP17/16: ‘’needs before objectives’’

This is the client’s real capacity for loss: do they ever run out of money?

How are you assessing whether they do?

There are more complicated solutions out there, if you want them.

You have to be able to project sensibly into the future to assess whether they have any realistic chance of meeting those objectives:

Adviser role when advising drawdown

This is very simple.

Additional content for income withdrawals
COBS 9.4.10G25/04/2016

When a firm is making a personal recommendation to a retail client about income withdrawals or purchase of short-term annuities or making uncrystallised funds pension lump sum payments, explanation of possible disadvantages in the suitability report should include the risk factors involved in entering into an income withdrawal, purchase of a short-term annuity or making uncrystallised funds pension lump sum payments.

These may include:

(1) the capital value of the fund may be eroded;

(2) the investment returns may be less than those shown in the illustrations;

(3) annuity or scheme pension rates may be at a worse level in the future;

(4) the levels of income provided may not be sustainable; and

(5) there may be tax implications.

All of this can be demonstrated using the EPC calculator from expert pensions

(1) the capital value of the fund can be projected;

(2) the investment returns may be less than those shown in the illustrations and can be tested a number of times;

(3) annuity or scheme pension rates may be at a worse level in the future;

(4) the levels of income provided may not be/maybe sustainable; and can be shown in the graphs

(5) there may be tax implications.

There are more complicated solutions out there, if you want them.

It has been 100’s of hours in development for the UK market.

It is based on 20 years’ experience in the USA, where it has been successfully designed, developed and used across the USA.

It has now been developed for the UK and brought to you under licence and developed specifically for the UK market.

This is an essential for EVERY business in the UK, EVERY adviser who advises on pension income drawdown or advises on Pension Transfers into drawdown.

You can find out more here


About Author

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Dubbed by friends and colleagues “The Pensions Professor”, John Reynolds is widely acknowledged as one of the country’s leading experts in the financial services education sector. He has spent 20 years teaching, consulting, mentoring and writing on the subjects of pensions and investments. John’s unique ability to take his years of experience and technical knowledge and present it in an easy to understand format, has resulted in his talents being very much in demand. His portfolio of corporate clients include CII, Lloyds, Scottish Widows, Santander and Wesleyan; as well as numerous IFA clients whom he provides technical consultancy, mentoring and training on client case studies and staff training.. He has put his extensive expertise (and heart and soul!) into developing the expertpensions (EPL) proposition. EPL is a structured and interactive technical exam training programme for IFAs. It's designed to give financial advisors the required technical knowledge, study strategy and exam technique to confidently sit and pass the AF1, AF3, AF4 and AF5 exams. Its online, it's fully supported, structured and designed to help advisers reach Chartered Financial Planner status quicker. It's ready to help your advisers reach chartered status

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