Q - My client has a final salary scheme where the employer provides a temporary pension until state pension age. How to I model this in Voyant?
A - Essentially, the software assumes that a 'pension' annuity is for life, so to have the option of receiving a pension for a predefined term, one must assume that it is 'not' a 'pension' annuity.
There are two options:
1. Enter the temporary pension as a non-pension annuity on the Pensions > Annuity screen - non-pension, because you then have the option to specify a term. The only 'fudge' here is that one must enter some purely nominal value (£1 will suffice) as the purchase cost of the annuity - this 'Capital Element' will be returned as part of the total specified 'Payment', but will not be subject to tax (because it is 'return of capital').
2. Alternatively, enter the pension income as 'Other Income' which, again, will enable you to specify the period over which the pension payment is paid/received. Just be aware that this payment will be treated by the system as 'self-assessment' income, with tax being paid annually-in-arrears (as opposed to PAYE).