Retirement Income - Schedule the future annuitisation of a money purchase

Default Crystallisation and Drawdown Income Schedule for Money Purchases

Unless set otherwise, money purchase benefits will be retained within the money purchase wrapper for as long as possible, with benefits being crystallised on an 'as needed' basis. The 'as needed' setting will allow the software to take a series of Uncrystallised Funds Pension Lump Sum (UFPLS) withdrawals, as and when needed and, by default, this instruction will take effect from the individual's Retirement event; of course, 25% (by default) of any withdrawals will be paid tax-free, with the balance being treated as taxable income. As such, the software's default setting, with regard to money purchase benefits, no longer entails moving benefits into pension drawdown. 

Schedule the Future Annuitisation of a Money Purchase

An alternative retirement planning scenario would involve using money purchase benefits for the purchase of an annuity. This can be scheduled either using an event, or the individual's age, via the Money Purchase screen’s Withdrawals & Annuity > Annuity panel. When scheduling the purchase of an annuity, be sure to tick the panel’s Annuitisation Applies check box.

Complete the fields in the Annuity panel as appropriate for the annuity which will be purchased. See below for an example:

Annuity.PNG

Once completed, click OK, then click Update.

For more information on how annuity rates are calculated in Voyant click here.

 

Videos

Retirement Income (Webinar 2)

In the table of contents click Show More then click on the time next to Scenario 4 to jump to the section on annuitisation.

 

Last updated 3 August 2016, Release 4.1.42