Retirement Income - Schedule the future crystallisation of a money purchase and the start of drawdown Income

Default Crystallisation and Drawdown Income Schedule for Money Purchases

Voyant is designed to allow you to create a robust plan in a matter of minutes without delving into the advanced settings. Retirement income is set initially to a basic drawdown scenario used by many advisers before exploring alternative options such as annuitisation or phased drawdowns.

You can view these default settings on the Money Purchase screen’s Withdrawals & Annuity > Drawdown Strategy / Drawdown Pensions (USP) panel.

Money purchases are set by default to crystallise on an "as needed" basis. 

These "as needed" crystallisations are also be set to begin at the owner’s Retirement event.

As needed crystallisations are made respective of the client's expenses and incomes. 

When additional top-up income is needed to fulfill expenses in a given year, the software's Liquidation Order comes into play. A default Liquidation Order is set in preferences, and generally, if it is not set otherwise, the software will take ad hoc withdrawals from cash accounts (savings) first, then taxable investments (unwrapped investments such as GIAs, unit trusts), then tax deferred investments (money purchases set to be crystallised as needed as well as life funds), and finally tax free investments (ISAs). 

Read more >> about how the liquidation order is applied and how to edit it, if necessary. 

 

Schedule the Future Crystallisation of a Money Purchase and the Start of Drawdown Income

The future crystallisation of a money purchase into a drawdown pension and the start of drawdown income can be scheduled on the Drawdown & Annuity > Drawdown Strategy / Drawdown Pensions panel. This panel is found on both the Pensions > Money Purchase and Drawdown Pension screens. Crystallisation settings are shared between these two screens, so the crystallisation and income can be scheduled on either of the two.

 

 

Videos

Retirement Income (Webinar 2)