WHAT IS COMPLEX ABOUT SAVING FOR A GREAT FUTURE? FOR FINANCIAL ADVISERS ONLY

ADVICE SOLUTIONS FOR A SUSTAINABLE TOMORROW, TODAY

HOW TO GET MONEY INTO A SAVINGS POT IF CUSTOMERS WANT TO IMPROVE THEIR RETIREMENT SAVINGS IN A TAX EFFICIENT WAY Using existing ISA savings to fund available pension allowances allows: customers to increase the capital value of retirement savings AND deliver greater retirement income streams after tax AND protect the value from any tax charges in event of death before 75

WHY NOW CONSIDER PENSION FUNDING? Freedom from April 2015 for those aged 55 and over to deliver income from pension savings without constraints Use the tax relief that pension rules allow to provide greater potential retirement income ISA savings can provide the means to fund the pension allowances Compare net income from pension contribution v NISA YOUR CUSTOMERS CAN SAVE AND PROTECT THEIR PENSION BENEFITS Rate of Income tax paid now Rate of Income tax paid in retirement 0%20%40%45% 20% %.+6.25%-12.5%-17.19% 40% %+31.25%+12.50%+7.81% 45% %+37.50%+18.75%+14.06%

PERSONAL FUNDING – THE RULES Require earnings in 2014/15 tax year* Available Annual Allowance – carry forward Available Lifetime Allowance YOUR CUSTOMERS CAN SAVE AND PROTECT THEIR PENSION BENEFITS BIGGER CONTRIBUTIONS NEED MORE ADVICE *£3,600 contributions and under do not require earnings

BEYOND THE BASICS – OPPORTUNITY THRESHOLDS Earnings above £41,865 – higher rate liability Earnings above £50,000 – loss of child benefit Earnings above £100,000 – loss of Personal Allowance Earnings above £150,000 – additional rate tax liability 4.4 MILLION CONVERSATIONS TO HAVE* THE CRA IS FIT FOR CUSTOMERS TODAY AND POST APRIL 2015 Source: HMRC survey of pension incomes – updated table February 2014 – Number of higher rate and additional rate taxpayers

WHAT TYPE OF CUSTOMER IS THIS FOR? PETER BUTLER AGED 67 EXAMPLE (CASE STUDY) Peter is an accountant earning £200,000 Has made gross contributions for 2014/15 of £9,312 already Has unused pension allowances from current tax year and 3 previous tax years of £71,571 Has existing ISA savings of £400,000 that he is intending to use as tax free retirement income Why should Peter consider using some of his ISA savings to fund his pension allowances? - Other savings largely locked up for future use

WHAT TYPE OF CUSTOMER IS THIS FOR? Peter takes £57,256 of his ISA savings to fund his unused pension allowance EXAMPLE (CASE STUDY) PETER BUTLER AGED 67

WHAT TYPE OF CUSTOMER IS THIS FOR? OUTCOMES FOR PETER Reduction in his tax bill of £16,348 Savings increased by £9,190 Greater retirement income than from ISA If 40% taxpayer when taking income – income increase of 16.86% If 20% taxpayer when drawing down income – income increase of 34.8% AND No tax charge on fund in event of death before age 75 PETER BUTLER AGED 67

WHAT IS THE BEST WAY TO ACHIEVE THIS? THE COLLECTIVE RETIREMENT ACCOUNT (CRA) THE CRA IS FIT FOR CUSTOMERS TODAY AND POST APRIL 2015 Provides single Account which client can invest in and draw income from Immediate investment and tax relief credits – no “clearing period” Options to use capped and flexible drawdown with phasing available on both Simple, transparent price – ONE product charge

WHO IS THIS NOT FOR? THE ISA REINVESTMENT OPPORTUNITY IS NOT FOR… THIS IS NOT FOR EVERYONE – IDENTIFY YOUR CUSTOMERS WHO COULD BENEFIT Any clients who wish to access their savings before age 55 Any basic rate taxpayer who may wish to draw a large part of future capital in one payment Any clients registered for Enhanced Protection, Fixed Protection 2012 or Fixed Protection 2014

TRAFFIC – NISAS TO REGISTERED SCHEMES 10.6 million members £54 billion in tax incentives in 2012/13 Money purchase Registered Schemes ** Source: HMRC Individual Savings Account (ISA) Statistics September 2013 ** Thematic review on annuities Feb 2014 / centre for policy studies report April million people £443 Billion in funds £15,000 new allowance NISA’s *

PPT10420/ /October 14 NEXT STEPS: IDENTIFY YOUR CUSTOMERS WHO ARE BUILDING SAVINGS FOR RETIREMENT INCOME WITH ISA SAVINGS AND PENSION ALLOWANCES Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Old Mutual Wealth is the trading name of Old Mutual Wealth Limited which provides an Individual Savings Account (ISA) and Collective Investment Account (CIA) and Old Mutual Wealth Life & Pensions Limited which provides a Collective Retirement Account (CRA) and Collective Investment Bond (CIB). Old Mutual Wealth Limited and Old Mutual Wealth Life & Pensions Limited are registered in England and Wales under numbers and respectively. Registered Office at Old Mutual House, Portland Terrace, Southampton SO14 7EJ, United Kingdom. Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority. Old Mutual Wealth Life & Pensions Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Their Financial Services register numbers are and respectively. VAT number