4th June 2015
Prudential: Advice opportunity - Managing clients’ nominations
Pensions Freedom has put pension planning in the spotlight - removing many of the constraints that used to exist for taking pension benefits - and it has liberated the ability to pass on benefits on death.
Watch a short video, created in partnership with Retirement Planner, where Vince Smith-Hughes demonstrates how changes to death benefits can be used to pass on wealth through the generations.
To have and to hold
Clients may approach retirement with different objectives - ranging from:
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using up their retirement fund for their own dreams; or |
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looking after their family and loved ones after they have gone. |
Our Retirement Modeller allows you to model the options for each client individually under the new Pensions Freedom.
Till death do us part
Pension planning is now a great way to plan how to pass on wealth to the next generation. With the relaxation of tax rules and now that death benefits can be passed to anybeneficiary - this provides a great opportunity to discuss pension planning with your clients.
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New Rules |
Drawdown funds |
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Death before 75 |
Tax free to any beneficiary as a lump sum or series of withdrawals. |
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Death after 75 |
Any beneficiary can draw on it at their marginal rate. Lump sum with 45% tax charge (marginal rate from 2016/17). |
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Advice Opportunity Client circumstances change and the rules on death benefits offer greater flexibility. So checking nomination forms are up to date and reflect the intentions of your clients is an important part of ongoing advice. Clients can amend their choices by completing a nomination of beneficiary form. |
Take a look at our Knowledge Centre to learn more about Death Benefits.
For any further enquiries please speak to your Prudential Account Manager.
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