Pensons and retirement

Question 1

14 points workshop Q

• Outline the** factors** an adviser would **take into account **when advising Tom and Sally on an appropriate course of action to provide them with sufficient income in retirement?

Use factfind informaton, info you already know and benefits and features

Answer 1

• Tom and Sally’s current state of health and life expectancy/family longevity history
• Tom and Sally have 14/15 years of working age before they reach minimum pension age (dependent on increase min age to 58)
• The level of state pension and whether there are any shortfall in NIC contributions
• Whether they will claim state pesnon or defer
• What level of income in retirement do they need and whether this will guaranteed or flexible
• Amount of capital needed and when
• The importance of death benefits and flexibility of these benefits
• Previous investment experience
• Desire of receiving ongoing advice and accept associated cost
• Their overall wealth/assets
• Capacity to fund further pension provisionm and where it is in the priority of objectives
• Mortgage due to be repaid by 2041 they will be ag 60 and 59
• They both have medium ATR and medium to high CFL
• Affordability/over £3,000 in surplus income, willingness to salary sacrifice
• Employers wont match increased contributions
• Both have wide fund choice and switching without penalty under their WPS
• Desire to invest in ESG, commodities and precious metals
• Likely amount of inheritance from Tom’s mum
• Two dependent children which they intend to help with university costs
• Whether they intend on claiming state pension or deferring it
• Career plans until anticipated retirement age
• Tax position now and in the future
• Tom and Sally’s overal wealth
• Possibility of Tom’s mums future inheritance
• Capacity to fund furtherpension provision and interaction with other objectives

Question 2

What approrpriate course of actions can you recommend Tom and Sally to help them achieve their retirement goals

Answer 2

• Investigate salary sacrifice
• Increase pension savings lump sum or regular - they have over £3,000 in disposable income and large amount of investments
• Take more risk - as they have medim to high capacity to loss
• Maximise ISA allowance - Income tax and CGT free growth
• Consolidate their pension - To benefit from more competitve charges for holding higher fund thresholds
• Use cashflow planning - Identify shortfalls and various scenarios that can help decision making
• Ongoing reviews - Make sure any plans put in place are on track and assets rebalanced
• Invest cash base assets to achieve potential growth - to reflect their medium ATR and reduce exposure to interest rate and inflation risk
• Overpay on mortgage - reduces term/payoff before retirement
• Ensure suitable protection policies are in place - means savings and investments not accessed to help maintain standadrd of living
• Use investment bond - provide tax deferred income in retirement
• Review of the suitability of Sally’s deferred pension
• Review pension funds and Tom and Sally’s objectives

Question 3

Benefits of salary sacrifice

Answer 3

Employee
* Keeps Toms NAI below personal allowance threshold of £100,000
* Reduction in earning above the upper earning limit saves 2% NI (REMEMBER earning above this point is £50284 a year
* Could get back all or some child benefit if both Tom and Sally’s ANI is below £80,000 to £60,000 - Extra £2000 odd a year
* Immediate benefit of higher rate tax relief on pension contributions
Employer
* NI contributions reduced on amount sacrificed saving 13.8%
* Could contribute this savings into Tom and Sally’’s pension

Question 4

Drawback of salary sacrifice

Answer 4

• Reduces Tom and Sally’s entitlement to employee benefits such as death in service and sick pay benefits based on low figure, salary increses or overtime
• Cant revert back to original salary unless a major change in circumstances
• Borrowing ability such as for mortgage reduced as income is lower

Question 5

Rules to Salary Sacrifice

Answer 5

• Must be in writing and signed by Tom and/or Sally confirming reduction in gross salary in exchange for non cash employee benefits
• Must be done before any salary sacrifice takes place, cannot be done retrospectively
• Salary or bonus in exchange for non cash employee benefits
• Must be for at least 12 months

Question 6

What additional informaiton would you require from Tom and Sally in order to advise them on the suitability of their pension arrangements

Answer 6

NEED
* Sally and Tom’s antifcipated retirement date/age or date access to funds would be required
* The level income they require in retirement or capital
* Do they need a lump sum or income
* Do they need a guaranteed income or do they want their income to be flexible
* Do they want their income to be indexed to protect the value against inflation?
* Tom and Sally’s views on future legislative changes or on inflation
* Tom and Sally’s views and expectation on future growth rates
* What is Tom and Sally’s social responsible investment preferences, do they have a criteria
GOT
* Up to date statement of Tom and Sally’s scheme benefits
* The current value of the funds Tom and Sally are invested in and the investment returns/performance on the fund
* Projected benefits to Tom and Sally’s anticipated retirement age
* Level of contributions made by Tom and Sally and their employers for the current year and the previous three tax years
* The charges/penalties applicable to the plans for switching funds or transfers out of scheme
* The range of funds available that Tom and Sally have access to
* What the asset allocation are the funds in Sallys deferred pension
* Tom and Sally’s state pensions entitlement BR19 and whether there are any NIC contributions to be made up or are missing
* Is Tom and Sally prepared to earmark other assets they may have to this area
* Can the existing or deferred plan be accessed flexibly?
* Any guaranteed income or indexed income
* Can Tom and Sally access the pension before NRA and are there any penalties in doing so?
* Any salary sacrifice arrangement available with their employers
FILL
* Are there any penalties on Sally’s deferred pension to switch out of the scheme
* Has Sally nominated Tom as beneficiary on the deferred pension nomination form
* Affordability for this objected
* Willingness to bridge the gap from chosen retirement to state pension age
* Willingess to use existing assets towards this objective

Question 7

8 points

Factors to take into account when pension switching

Answer 7

• The charges on Sally’s employers scheme and the charges on the deferred pension
• The intial cost of transfer and cost of advice
• Any transfer penalties that would be imposed by the deferred scheme
• Any gaurantees or indexation in the deferred scheme
• Flexibility and access in Sally’s employers scheme and the deferred scheme
• Fund choice, performance and cost of both plans
• Ease of administartion of both scheme
• Access to ethical or ESG funds or investments on the deferred scheme
• Liquidity issues in existing fund
• Sally will be out of the market during the transfer
• Future career plans

Question 8

Additonal information needed when considering pension switching

Answer 8

• Charges on the plan for the deferred pension and Sally’s employer’s scheme
• Asset allocation of the funds and associated charges of the deferred pension
• Associated charges and range of investments of the deferred pension and Sally’s employer’s scheme
• Any penalties to transfer out of Sally’s existing pension scheme
• The performance of the existing fund
• The projected value of the existing scheme and that of the Sally’s employers scheme
• Are there any death in service as part of the scheme or what death benefits are payable
• Can the plan be accessed flexibly
• Are there any penalties for taking benefit before NRA

Question 9

Pension switching options

Answer 9

• Sally could leave her deferred pension where it is
• The deferred pension should be reviewed to ensure its in line with her ATR as we dont know what the current asset allocation is
• The plan should be reviewed to ensure its competitively charged
• If the plan cannot be amended to reflect ATR or if the charges are too high she can
• Transfer the plan to her employers scheme if its found to be more competitve in charges and suits her needs better e.g ease of administration, access penison information in one place and reduce paperwork

Question 10

Retirement money purchase death benefits

Answer 10

• Tom or Sally can purchase a lifetime annuity or scheme pension with the funds
• Tom or Sally can designate the funds into a dependents flexi access drawdown plan
• Tom or Sally can take all the funds as a lump sum
• All the options are tax free if death was before 75
• Tom or Sally must designate the benefits in some form within two years of advising the scheme administrator of the deceased spouse death
• All the options would be taxable at the surviving spouse’s highest marginal rate if:
• Either of them died after age 75
• Either failed to designate the benefits in some form within two years of advising the scheme administrator of the deceased spouse death

Question 11

What is the annual allowance and what is isnt

Answer 11

• Maximum amount of pensions savings an individual can make each year iwth the benefit of tax relief - The sum of all pension contributions from all sources relevant to that individual
• It is not a restriction on the amount of tax relief given out when pension savings are made e.g so Tom and Sally can put their salary £96,000 and £86,000 putting into pension and can get all the tax relief on it -
  important they claim tax relief as that will offset some of the annual allowance charge
• Instead, the annuallwance works by applying a taxcharge when the annual allowance is exceed

Question 12

Carry forward basics

Answer 12

• Unused allowance (not tax relief) that get carried forward
• Last three years
• Current year’s allwoance first, then oldest unsued allowance
• Member of UK pension scheme

Question 13

14 points workshop Q

Describe in detail the process an adviser would follow to **ensure **that Tom and Sally’s existing pensions and investments are on target to provide their desired level of income at thier anticipated retirement age

Answer 13

• Establish the level of income and any capital they require at their intended retirement age
• By completing a lifetime cashflow forecast
• Ontain state pensions forecast BR19
• Agree inflation, growth and interest rate assumptions to be used
• Likely tax status now and in retirement
• Obtain fund projections to intended retirement age of pensions of pensions
• and other assets to be used to provide income at retirement
• Include assumptions in increases in contributions going forward
• Based on the term and the likely longevity
• Establish withdrawal rate or annuity rate
• Determine fund required to provide the level of income needed
• then determine the shortfall
• Calculate the level of contributions needed to meet shortfall
• Implement, monitor, reblance and review regularly with Tom and Sally to ensure objective is on track

Question 14

7 points workshop Q

**Explain **to Tom and Sally how **‘pound cost averaging’ **from investing regular contributions could be used to assist them in their objectives providing sufficient income throughout retirement

Answer 14

• Allows them to have decipline to savings
• Benefit from volatility as more units purchased in falling market
• Avoids market timing risk, investing lump sumbefore market down turn
• Suitable for longterm investment term of 14/15 years that Tom and Sally have
• They have flexibility in contributions and can increase or decrease later
• Reduces the risk of investing in higher risk funds
• Evens out/averages the cost of units

Question 15

10 points

Outline the key factors that Tom and Sally should consider when building a diversified investment portfolio within their pension funds

Answer 15

• Diversification of asset allocation, no fixed interest, propety or alternatives in current investment
• Tom’s WPS only in global equities not math ATR
• Diversification of geographical area as Sally’s WPS with monarch is only in the UK market
• Fund switching costs to reflect a diversified portfolio
• Whether the proportions meet their medium ATR and CFL
• Their interest in investing in ESG, commodities and previous metals
• Builidng in assets that are non correlated
• Availability of a wide range of funds nd investments that can match thier medium ATR and to enable diversification of various different asset classes
• Cost and charges in relation to asset classes, pension wrapper and other related costs
• Liquidity of assets
• Currency risk
• Passive vs Active
• Personal control/time and administration

Question 16

10 point workshop Q

Comment on the suitability of Tom and Sally’s existing pension plans and the **steps **they could take to seek an improvement in their overall retirement strategy

Answer 16

• Both have 5% employer matching, no further matching available
• Tom only has his current WPS, this is entirely in Global Equity fund, no exposure fix interest, property or alternatives
• Does not match his ESG investment requirements
• This is high risk and does not match Tom’s medium ATR
• Tom should switch funds to match his ATR and his ESG preferences
• Sally WPS is in UK ehtical equity fund and UK multi asset fund, both match her medium ATR and one takes account of her interest in ESG investment and the defferred UK multi asset does not
• Sallys deferred pension is diversified between different asset classes
• Both WPS funds are entirely invested in the UK market and there is no geographical diversification
• Ability to switch fund in Sally’s deferred scheme is limited
• Sally should look to consolidate pension and switch to her employer’s WPS
• Both Sally and Tom could increase their pension contributions, this would also assist in reducing ANI for child benefit purposes
• Consider if employer would suppost salary sacrifice, immediate tax relief and rebate in employee and possibly employers NI
• This would provide both Tom and Sally with higher potential growth

Question 17

14 points workshop Q

Recommend and justify a range of suitable actions that Tom and Sally cold take in respect of their pensions and investments to improve their financial position in advance of their anticipated retirement age

Answer 17

• Both could Increase their pension contributions
• enough to bring down ANI to £60,000 and regain child benefit for both children equating to £2,212.60
• Contributions and 40% tax relief grow free of tax and outside Tom and Sally’s estate for inheritance tax purposes
• Both Sally and Tom could do a salary sacrifice, again down to £60,000 for the reasons above
  -Immediate tax relief at 40% and benefit from employee NI of 2% added in, employer may also add employers NI savings of £13.8%
• Take out a gift intervivos plan with the life assurred to be Tom’s mother- This will pay out a tax free lump sum to pay Tom’s third share of any IHT due should his mother die within 7 years of assigning the investment bond to him. This should be in trust, so value outside his estate, premium would be part of annual exemtpion of £3,000
• Move excess cash to other assets that will utilise divdidend allowance £500 x 2 and CGT annual exemption of £3,000 x 2, amounts exceeding these will be charged dividend HRT 33.75% and CGT HRT 20% more tax efficient than 40% tax paid on interest. Greater potential for growth
• Continue to pay the maximum £20,000 allowance into their stocks and shares ISA - as the contribution can grow free of income tax and CGT
• Overpay mortgage to reduce mortgage balance, enable mortgage to be paid off before anticipated retirement and no debt into retirement
• Ensure on target for full state pension entitlement
• Put in place income protection for both Sally and Tom so that in event of accident or sickness they can continue with their pension savings and maintain lifestyle.
• Ensure ongoing review to make sure objectives are ontrack and rebalance of investment and pension funds
• Increase regular contributions into investments - benefit from pound cost averaging

Question 18

Tom and Sally are considering using some of the cash held on deposit to improve their income in retirement. Describe how Tom’s maximum tax relievable pension contributions for the current tax year is determined

Answer 18

• Take current annual allowance of £60,000
• Obtain total pension input from all sources for the current tax year
• Deduct pension input from annual allowance
• This gives the allowance remaining for the current tax year
• Calculate any carry forward allowance from previous three tax years
• Must use current year’s first then oldest in last three years
• Unused carry forward cannnot exceed earned income in the current tax year which is £96,000 for Tom.

Question 19

7 points

Explain the factors they should consider when deciding whether to increase their contribution to their personal pension rather than investing in a stocks and shares ISA

Answer 19

• Tax position now and at preferred retirement age.
  ISA withdrawals are tax free and Pension has 25% tax free with 75% taxable dependent whether Tom and Sally are HRT or BRT in the future may affect where they decide to contribute
• Access to funds now or in the future.
  Tom and Sally can access an ISA anytime, so if they needed the contribution back for any reason the can whereas with the pension they cant access till minimum pension age of 57 (possibly change to 58)
• Benefit of tax relief
  Pension contributions benefit from tax relief at Tom and Sally’s highest marginal rate. Which means for every contribution they make they would get tax relief of 40%. The ISA available to them get no tax relief.
• IHT benefits
  Any contributions into Tom’s and Sally’s pension would be immediatly outside of their esatate for IHT purposes, whereas though there is an APS on death, this is only available to the spouse and not children.
• Higher contribution levels for pension than for ISA
  ISA limited to £20,000 a year, Tom and Sally can use annual allowance and carry forward to increase their contributions based on their salary
• Child benefit and Taper relief
  Pension contributions could return child benefit payment by reducing ANI to £60,000 and avoids income being subject reduction PA as Tom’s current ANI is £95250

Question 20

8 points workshop Q

Outline the main benefits and drawbacks for Tom and Sally investing into ISAs rather than pensions for their retirement planning

Answer 20

Benefits
* They have the flexibility of payments in which they can also access so if they do need the funds they wont have to wait till their minimum retirement age for the pension to access the money.
* Provide tax free income regardless of tax status
* Whole fund can be taken as tax free cashwhereas
wth a pension you only get 25% tax free lump sum and the remaining 75% is taxed at their highest marginal rate
* ISA allowance is not dependent on earning income

Drawbacks
* No tax relief at highest marginal rate, unlike pension. Tom and Sally can get 40% tax relief
* Can be added to the estate for IHT purposes unlike pension which is IHT free
* Wont reduce Tom’s ANI so wont regain child benefit and personal allowance reduction still an issue
* Maximum allowance is £20,000 per tax year, Tom and Sally’s pension contribution can be higher as will be based on their salary and can use carry forward to increase contributions
* Temptation to draw funds for other uses prior to retirement

Question 21

9 points

Tom’s employer offers the option of making his pension contributions via salary sacrifice. Explain in detail to Tom how a salary sacrifice arrangement would operate in respect of his pensions contributions and the tax benefist this would provide him

Answer 21

• Tom would agrees with his employers a reduction in his gross salary
• The minimum term for this agreement is a 12 month period
• This must be agreed in writing confirming a reduction in gross salary in return for non cash benefit
• Tom’s employer will deduct the amount agreed from his monthly gross salary
• Tom’s net pay is virtually unchanged
• No admin for Tom
• Treated as employer contribution and counted towards annual allowance
• Reduces income tax
• Tom’s employer could also put employees 2% NIC savings into his pension
• Tom’s employer could also include the savings from employer NIC of 13.8% into the pension
• Increases pension for IHT benefits
• Salary could be reduced enough to reduce ANI to aid child benefit claim

Question 22

10 points workshop Q

State the reasons why Tom and Sally should consider increasing their personal contributions into their respective employers quallifying WPS

Answer 22

• Reduces ANI to the extent they could regain their child benefit for the two children
• Reduces the likelihood that both their ANI could go over the £100,000 threshold where PA is reduced and tapered
• Tax efficient growth as no income and CGT
• They have 14/15 till minimum pension ages and so benefit from potential growth
• They would get tax relieft of 40% due to being HRT
• Contributions made into the WPS would be outside of their estate for IHT purposes
• They have modest pension arrangements and should build up their fund to aid and increase their income in retirement
• Low charges
• Allows flexible option at retirement
• Decipline in pound cost averaging
• They are able to pass on their pension to their children and if they die before 75 income taken would be tax free
• Pensions are protected in bankruptcy, so creditor cannot get them

Question 23

10 points workshop Q

When formulating a financial plan for Tom and Sally, **identify **any **reasonable assumptions **you could make in about thier situation in respect of ensuring sufficient income to maintain their standard of living thorughout their retirement

Answer 23

• The will review their expenditure committments
• They will only provide support for Noah and Amelia whilst at university
• They both claim their state pension at 68 and make class 3 contributions if insufficient NIC
• Remain employed until anticipated retirement date
• They maintain their employer/employee pension contribution
• They remain UK residents
• They maximise their pension contributions
• ATR remains the same
• They remain in good health
• Willing to change ownership of assets
• Income needs dont increase significantly

Question 24

8 points workshop Q

Outline to Tom and Sally the** key factors **that may result in them **failing **to **ensure they have sufficient income throughout retirement, **based on their current cirucumstances

Answer 24

• State pension age for both is 68, this may create a significant gap between anticipated retirement and reciept of state pension
• Relatively low levels of pension funding
• Potentially higher mortgage cost in two years.
• Unexpected cost while assisting Noah and Amelia at university
• No income protection or CIC for Sally and Tom in event of accident or illness or diagnosis of serious illness, Loss of employment
• Currently have two financially dependent children
• Poor market conditions
• Legislation changes such as change to min pension age

Question 25

10 points

Outline to Sally the benefits and drawback of **retaining the UK multi asset **fund within her previous pension plan, when considering their financial objectives of ensuring they have sufficient income in retiremement

Answer 25

Benefit
* The fund matches Sally’s medium ATR
* The fund is diversified between different asset classes reducing the risk
* Multi asset funds can access no traditional asset classes to generate inflation proofed income
* Income from these type of funds tend to be more stable drawing from multiple asset clases
* Better alignment with manager and investor interest
* They offer monthly distributing share classes for regular income payments

Drawbacks
* Sally’s capital maybe at risk over the longterm as income paid is not natural income
* Some strategies are too aggressive to be sustaniable over the longterm
* Some portfolios can carry high fees
* Fund unlikely to meet ESG preferences
* Some strategies too aggressive to be sustainable over the longterm

Question 26

5 points

Comment on the suitability of Tom continuing to hold his current pension investment within the Global equity fund

Answer 26

• Tom’s has a medium ATR
• The fund is high risk and so does not match his ATR
• Global nature exposes Tom to currency risk affecting the value of sterling
• The geographical spread also exposes Tom to political risk which can impact the assets held
• The investment is solely in equity and is not diversified asset allocation wise. No exposure to fixed interest, property and alternatives. Very volatile. Potential for growth but also potential for falls.
• Potential for sequencing risk
• Vulnerable to market movements

Question 27

6 points

State the requirements that Tom and Sally must meet in order to pay Class 3 NIC

Answer 27

• They may pay class 3 NIC to increase entitlement to State pension
• They can only make payments for a year they had insufficient class 1 or class 2 NIC
• Cant be paid in the year which they reach state pension age
• Can normally be paid for the last 6 years
• Due to Tom and Sally’s age they have until 5 April 2025 to pay voluntary contributions to make up for gaps between April 2006 to April 2016
• May benefit Sally if she didnt claim child benefit and didnt work for an extended period when Amelia and Noah were born

Question 28

10 points workshop

Tom and Sally would ike to ensure they can achieve their financial objectives and have heard cash flow forecast may be of help to them

Identify the **main factors and assumptions **that you should **discuss **with Tom and Sally when formulating a cashflow model

Answer 28

• ATR and CFL
• Income and expenditure and the rate of increase
• Amelia and Noah starting university and likely costs to assist them
• Life expentancy
• Withdrawal rate /annuity rate
• Growth rates of investments and pensions
• Inflation rates
• Assumptions for fees and charges
• Use of tax efficient tax wrappers

Question 29

8 points

Tom and Sally would ike to ensure they can achieve their financial objectives and have heard cash flow forecast may be of help to them

Explain the** benefits** of usng a cash flow forecastt in establishing a strategy for meeting Tom and Sally’s financial objectives

Answer 29

• Allows adviser to compare the expected income with expected expenditure pattern
• Both now and in the future
• Advisor can stress test different scenarios
• Understand the impact of future events on their ability to cover outgoings
• Allowing the adviser to indentify potential shortfalls
• Put plan in place to avoid shortfall
• Cashflow forecast allows assumptions to be made for investment growth and inflation
• Can be adjusted as circumstances changes to ensure figures are meaningful
• Cashflow forecast can help the adviser determine a suitable asset allocation for Tom and Sally’s pension and investment

Question 30

6 points

Risk of relying on cashflow modelling to help them meet their financial objectives

Answer 30

• Estimate only requires regular rview
• Assumptions could be wrong
• Personal objectives and cirumstances could change
• Doesnt always take account of exemptions and allowances or tax wrappers
• Cash model returns are linear
• Difficult to take account of market risk or political risk
• Doesnt consider liquidity of assets

Question 31

6 points

Outline six scenarios that should be discussed with Tom and Saly when carrying out a stress test of their cashflow forecast

Answer 31

• If they lived beyond their life expectancy
• If the major disaster of major maketes were to fall
• if either Tom or Sally were to lose their job
• if ether Tom or Sally were to die before retirement and during retirement
• Children still living at home
• If there was a major unanticipated cost that cropped up

Question 32

8 points

Explain to Tom and Sally why it is important to carryout a regular review of their pension arrangements

Answer 32

• To ensure they are on target to meet their objectives
• To account of any changes in circumtances
• Check the performance
• Re-balance assets
• Tom and Sally’s medium ATR or CFL may have changed and should be reflected in the investments
• Legislation changes could impact the pension tax wrapper
• Changes in pension contribution levels
• Discuss new product that maybe more suitable for them

Question 33

6

State six factors an adviser should take into consideration when reviewing Tom and Sally’s penson arrangements at their next annual review meeting

Answer 33

• Asset allocaton and reblancing
• Changes in ATR and/or CFL
• Use of allowances and any carried forward used and remaining
• Changes in personal circumstances or objectives
• Changes in income requirements
• Changes in income
• Changes in legislation, taxation
• Fund choices
• Did Sally siwtch deferred pension into employer’s WPS

Question 34

10

Outline the benefits of Tom and Sally using the services of a financial adviser on an ongoing basis to review their pension investment strategy

Answer 34

• Professional and experience advisor who could answer and clarify any questions or query that Sally and Tom may have
• Benefit from research
• Review performance and ensure their finacial objectives are on track and take action discuss options with Tom and Sally when their not
• Analysis of budget and cashflow forecast
• Consumer protection/FCA regulated
• Review suitability of investment strategy and fund
• Regular reviews and rebalancing of assets
• Take account of any changes in personal cirucmstances or changes in objectives
• Take account of any changes in ATR and CFL
• Advice on tax efficiency and utlising allowances and exemptions
• Less admin for Tom and Sally
• Likely result in improved returns
  *

Question 35

8 points

Explain to Tom and Sally why it is important to review theirr pension arrangement in advance of retirement

Answer 35

• Ensure all death benefits nomination forms are up to date
• Allows for any state pension shortfalls to be addressed
• Can make up with higher contributions now, tax relievable at 40% to fill any shortfalls
• Tom and Sally’s ATR may change now they are closer to retirement and funds need to reflect his
• Charges in relation to decummulation discussed
• Determine how they are going to draw retirement income whether flexibly or annuity
• Review fund perfomance to ensure sufficient income in retirement