1. John Davis ACII, APFS Technical Development Manager “Freedom and Choice” Pensions Masterclass

2. Retirement Desk 08000 850 250 I For Financial Adviser Use Only To understand the: The Learning Outcomes 2 Key stages in a client’s retirement journey and the advice implications Main considerations when advising on pension consolidation. NEW advice requirement for final salary pension transfers: Need for advice to clients in the “transitional period” up to 5th April 2015. Need for advice from 6th April 2015 and the risks clients face. Reasons equity release is likely to become more popular. Which clients can do this? Which clients cannot? Which clients should not! Comparing at retirement transfers with pre-retirement transfers Learning Outcomes can be validated through the multiple choice questions ANY QUESTIONS ?

3. Retirement Desk 08000 850 250 I For Financial Adviser Use Only CONSOLIDATIONACCUMULATIONDECUMULATION LV= ‘at the Heart of Retirement’ 3 Retirement asset pool Consolidating assets Planning for retirement Managing throughout retirement Start saving Building up retirement assets Considering issues and options Retirement review PHASE Safeguarding saving propensity ANNUITIESDRAWDOWN EQUITY RELEASE EnhancedCapped Asset BackedFlexible Fixed TermPartial Phased Post-75 RETIREMENT INCOME FOCUS

4. Early planning issues

5. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Accumulation phase 5 Protecting income Starting retirement funding Auto enrolment Tax planning

6. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Starting retirement funding 6 Start saving – emergency fund Get someone else to pay in Realise that you will retire/ want to retire one day. Realise that the State won’t fund it. Appreciate the tax advantages of pension plans Reassess priorities grand-parents/ parents? employer through auto- enrolment or ideally final salary!

7. Retirement Desk 08000 850 250 I For Financial Adviser Use Only 77 Protecting pension contributions Age at start Annual gross premium Term of premiums Total premiums (gross) Total premiums (net of basic rate tax) Fund at retirement Retirement age 0£3,60018 years£64,800£51,840£1,053,40565 0£3,60065 years£234,000£187,200£1,726,69665 30£3,60035 years£126,000£100,800£341,41165 40£3,60025 years£90,000£72,000£180,40865 50£3,60015 years£54,000£43,200£81,56765 BASIS OF CALCULATIONS 5% annual return net of charges Annual premiums paid at start of each year

8. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Pension issues and historic objections 8 Compulsory annuitisation Complex restrictive rules Expensive Age 75 restrictions Tax relief (more on this later) Tax free cash Age 55-57

9. Mid life issues

10. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Consolidation phase 10 Accumulation phase has started Pension switching – advantages Lower costs Better fund choice Wake up call?

11. Retirement Desk 08000 850 250 I For Financial Adviser Use Only The size of the market 11 30 million policies Policies worth £150 billion in total Source: FCA – reported in “The Guardian” 28th March 2014

12. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Things to look out for: Investigation of existing pensions Chosen investment funds and performance With profits? Terminal bonus/MVR? Early exit/transfer penalties Plan chargesSwitching charges Paid up or still being funded? Transfer value (if different) Start date and type of plan Current plan value 12

13. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Things to look out for: Investigation of existing pensions Health of the client (s) Waiver of premium? Written in trust? Any life cover included? Pre A-Day? Protected tax free cash? Protected retirement age? Guaranteed annuity rates? 13

14. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Money Purchase – to help with initial assessment we only need: Transfer Value Analysis Report Transfer value Projection rates used by existing provider Projected values at selected retirement age Client date of birth and selected retirement age 14

15. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Unsuitable advice - regulatory issues 4 main reasons for unsuitable advice Unnecessary additional product costs without good reason (79% of unsuitable cases) Funds not suited to “attitude to risk” and personal circumstances (40% of unsuitable cases) Need for on going advice not explained (26% of unsuitable cases) Loss of benefits without good reason (14% of unsuitable cases) Source: FSA thematic review – December 2008 15

16. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Ceding scheme and new scheme comparison – charges, performance, etc. What the FCA are looking for: The perfect pension switching client file Are all key documents on file, disclosure, factfind, research etc? Client personal details and objectives – health (specifically if poor). Ceding scheme details – fund value v transfer value – need to justify switch. Provider chosen and fund selection/split. How attitude to risk has been assessed. Loss of benefits explained and justified to client How stakeholder was discounted. Was there a commitment to review the product performance/ advice? Was there any evidence advice was monitored? ie: has it been checked? 16

17. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Money purchase switches - how can LV= help? We now offer guaranteed pension funds. We have a money purchase transfer analysis system with variable projection rate analysis We have low cost risk assessed funds. We specialise in this area of the market so please ask us if we can help. 17

18. Final salary transfers - In consolidation phase

19. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Freedom & choice Defined benefit pension transfers 19 but not for all “ ” Private sector defined benefit members have a legal right to a transfer up to one year before Normal Retirement Age. THIS REMAINS IN PLACE Unfunded public sector defined benefit members do not generally have the right to a transfer to a money purchase arrangement THIS IS A CHANGE

20. Retirement Desk 08000 850 250 I For Financial Adviser Use Only An individual who decides to transfer deferred benefits: What is a pension transfer? 20 From To A stakeholder pension scheme; A personal pension scheme; or A deferred annuity policy where the eventual benefits depend on investment performance in the period up to the intended retirement date An occupational pension scheme; An individual pension contract providing fixed or guaranteed benefits that replace similar benefits under a defined benefits pension scheme; or (in the cancellation rules (COBS 15)) a stakeholder pension scheme or personal pension scheme; FSA factsheet 06/09

21. Retirement Desk 08000 850 250 I For Financial Adviser Use Only What are the issues for advisers in this area? 21 It is likely more clients with deferred benefits will wish to consider “freedom and choice”. They now need to take regulated advice. Do you provide this advice to existing clients? If not, do you refer on to a specialist? Do you provide this advice to new clients? How does the adviser get paid? Adviser charge? Only on transfer? Dangerous! Can you avoid this area? What is your stance?

22. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Pension specialists Who can advise on pension transfers? 22 Generally G60/AF3 Need to apply to FCA for “pension transfers permission” Need to consider P.I. insurer permits such activity

23. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Scheme Financial Security 23 Many private sector DB schemes are underfunded Impact on transfer values? Only protects benefits up to 90% of £36,401.19 for retirement at age 65 (At April 2014) Only increases post 5/4/97 benefits in line with lesser of 2.5%/RPI(CPI) Pension Protection Fund issues for higher earners:

24. Retirement Desk 08000 850 250 I For Financial Adviser Use Only FOS are likely to side with the client in disputes. Issues which need to be considered: Reasons to be careful 24 Time to retirementPercentage of overall pension provision Client’s attitude to risk Critical yield Ongoing pension provision (really part of 2 above) Client’s exposure to investments Client’s occupation Must be a good reason to transfer

25. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Reasons to consider final salary transfers 25 Client does not want to take benefits in line with the scheme rules Client thinks that they can achieve the rate of return required to match (or out perform) the critical yield Client is concerned about scheme financial security and the Pension Protection Fund would not provide adequate protection. Other reasons exist such as; death in deferment, death in retirement, partner provision, poor health/ smoker status/single. Adviser holds appropriate qualifications and permissions to advise in this business area.

26. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Defined benefit pension transfers - how can LV= help? We can help assess the key issues which need to be discussed with clients We offer a final salary pension transfer analysis system Comparison with Pension Protection Fund Experienced Retirement Consultants so please ask us if we can help 26

27. Advice opportunities now - during the “transitional” period up to 5 th April 2015

28. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Added value retirement planning 28 Funding for retirement. Now you can get tax relief on your capital needs in retirement beyond simply 25% tax free cash. Effective rates of tax relief. Taking retirement benefits. Post Budget 2014 – we will consider the options now and advice opportunities. From April 2015 – help your near retirement clients to make the most of this opportunity.

29. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Advice opportunities - now 29 Does the client want : To make use of 150% GAD? Does the existing provider offer this facility or Member Nominated Reviews? Want a secure income – maybe an annuity? Has the client already secured the newly reduced Minimum Income Requirement ? - Does the existing provider offer flexible drawdown?

30. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Alternatively consider flexible drawdown through our Flexible Transitions Account Client scenario: Mr 71 and Mrs 66 married 30 His pension fund is £109,313 after having taken tax free cash. He has secured pension income of £13,000 made up of private and state pensions. So he now qualifies for Flexible Drawdown. OPTIONS? HOW WE CAN HELP? 1 He could now take the entire fund now. 2 He could draw it down over a number of years. We provide the client’s adviser a Protected Retirement Plan quote on 27 March 2014, with a Guaranteed Maturity Value of £0. (Adviser charge of 1.5% included). Joint life 100% spouse benefit and value protection. 1 10 year term = £12,482 a year (paid monthly in arrears) 2 15 year term = £9,163 a year (paid monthly in arrears) Client and adviser can now consider this option to meet client need. Source: LV= PRP quotes 27 March 2014

31. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Remember: Flexible drawdown for all from 6th April 2015! Client scenario: Ms 65 (single, adult children) 31 Has an uncrystallised pension fund of £100,000. Needs £25,000 from this fund now. Client now discloses that her State pension of £7,000 a year started in April 2014 along with another pension providing £5,000 a year. OPTIONS? HOW WE CAN HELP? 1 She may now be able to do flexible drawdown! We can provide a phased flexible drawdown quote. 1 To provide a cash sum of £25,000 Take £7,352.94 tax free cash Take £17,647.06 net income after deduction of 20% income tax (£22,058.82 x 0.80) 2 Net income is the same but only £29,411.76 of the fund has been crystallised. 3 More of fund remains uncrystallised – DEATH BENEFIT ADVANTAGE

32. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Wide range of pension planning opportunities 32 Funding opportunities (tax advantages) Individual contributions Corporate contributions Salary sacrifice contributions Deposit account to pension contributions One of the most cited objections to funding pensions removed Investment strategies Provision for dependants Death benefit taxation Retirement planning opportunities Phased retirement options

33. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Tax relief on contributions v tax on benefits 33 Rate of marginal tax Marginal rate of tax during retirement Whilst Working0%20%40%45%60% 20%+ 25%+ 6.25%- 12.5%- 17.19%- 31.25% 40%+ 66%+ 41.66%+ 16.67%+ 10.42%- 8.33% 45%+ 81.8%+ 75%+27.27%+ 20.45%0% 60%+ 150%+ 112.5%+ 75%+65.62%+ 37.50%

34. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Non taxpayer in retirement (eg: pre SPA) 34 Marginal rate of income tax InOut Gross£1,000 Tax relief£200Tax£0 Net£800£1,000 Gain is £1,000 - £800 £800 + 25%

35. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Higher rate taxpayer becomes basic rate taxpayer 35 Marginal rate of income tax whilst working 40% Marginal rate of tax in retirement 20% InOut Gross£1,000 Tax relief£400Tax free cash£250 Cost net of 40% tax relief£600Taxed cash£750 Less tax at 20%(£150) Net cost£600Net benefit£850 Gain is £850 - £600 £600 + 41.66%

36. Retirement Desk 08000 850 250 I For Financial Adviser Use Only 60% effective rate taxpayer becomes higher rate 36 Marginal rate of income tax whilst working 60% Marginal rate of tax in retirement 40% InOut Gross£1,000 Effective tax relief£600Tax free cash£250 Cost net of 60% tax relief£400Taxed cash£750 Less tax at 40%(£300) Net cost£400Net benefit£700 Gain is £700 - £400 £400 + 75%

37. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Basic rate in retirement with salary sacrifice 37 Example assumes employee NIC saving only InOut Gross£1,000 Employee NIC 12% £120Tax free cash£250 Tax relief£200 Taxed cash (£750 less £150) £600 Net cost£680£850 Gain is (£850 - £680) £680 + 25%

38. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Advice opportunities now - how can LV= help? We offer a one- year fixed term annuity. We offer two forms of flexible drawdown. Enhanced annuities for appropriate clients. We can do regular premiums alongside transfers. 38

39. Decumulation phase

40. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Decumulation phase 40 Final salary transfers at retirement Advice in the “new era”

41. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Client is taking benefits in this scenario, so it’s not a transfer! Final salary pension transfers – at retirement 41 Benefits are deferred if they are not continuing to accrue and the benefits are not being taken If an individual is transferring benefits for the purpose of crystallising the benefits these will not be considered deferred benefits FSA factsheet 06/09

42. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Transfers “at retirement” from money purchase or final salary pension schemes where client intends to take benefits are not “transfers” Not subject to the pension transfer rules. 42

43. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Members of final salary pension schemes: Final salary pension schemes – Summary 43 Private sector – right to a transfer still remains until one year before Normal Retirement Date but advice will be need from a professional financial adviser authorised by the FCA Public sector – proposing to restrict transfers from such schemes except in exceptional circumstances We do offer a TVAS service – please ask your Retirement Consultant A word of caution: Final salary schemes offer guaranteed benefits The apparent benefit of the new found flexibility may not be in the best long term interests of a client and their dependants However, choice and freedom are the words of the moment Which options available to a retiring client should you disregard?

44. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Most people opted for annuities in 2013! Illustrative only, not to scale Inv. Linked Conventional Drawdown Source : ABI. New business stats 2013 (12 months) 44

45. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Consider all the options 45 Fixed term annuities Investment linked annuities Enhanced annuities Capped drawdown New flexible drawdown “New” drawdown NOW APR 15

46. Retirement Desk 08000 850 250 I For Financial Adviser Use Only MAY BE SUITABLE FOR: Fixed term annuities 46 Clients who wish to: Defer annuity purchase but take tax free cash. Take income up to State pension age. Take tax free cash now to repay debts but defer income Take up to 150% of GAD now Avoid personal investment risk Be ready for new options from 2015 Certainty for client and adviser

47. Retirement Desk 08000 850 250 I For Financial Adviser Use Only MAY BE SUITABLE FOR: Investment linked annuities 47 Clients who wish to: Have a guaranteed level of minimum income Benefit from investment returns and hence potential increases to future income. Adjust future levels of income Have the option to convert to a conventional annuity in the future. Accept an element of risk in return for a potentially increasing income Good option for inflation protection?

48. Retirement Desk 08000 850 250 I For Financial Adviser Use Only MAY BE SUITABLE FOR: Enhanced annuities 48 Clients who wish to: Have a secure guaranteed income for life. Income enhanced by their medical or lifestyle condition. Have no personal investment risk. Ideal for those wishing to maximise income during their lifetime. Provide for spouse/partner on their death. Those that cannot risk running out of money Good option for those with poorer life expectancy

49. Retirement Desk 08000 850 250 I For Financial Adviser Use Only MAY BE SUITABLE FOR: Capped drawdown 49 Clients who wish to: Drawdown from their fund within current prescribed limits. Opportunity to draw Nil or up to 150% GAD. Retain future flexibility in the new era. Remain invested to gain from investment markets. Retain funds for spouse/partner on their death. Defer annuity purchase, potentially forever. All the reward; all the risk but high level of flexibility NOW

50. Retirement Desk 08000 850 250 I For Financial Adviser Use Only MAY BE SUITABLE FOR: Flexible drawdown 50 Clients who wish to: Remain invested with the risk/rewards that provides. Have full flexibility to drawdown as they wish. Drawdown income which may be subject to higher rates of income tax. Accept that running out of money may occur if fund runs out and inadequate other income available. All the reward; all the risk but maximum level of flexibility NOW Only available to those currently with £12,000 a year of secured pension income to meet the Minimum Income Requirement.

51. Retirement Desk 08000 850 250 I For Financial Adviser Use Only MAY BE SUITABLE FOR: NEW drawdown 51 Clients who wish to: Remain invested with the risk/rewards that provides. Have full flexibility to drawdown as they wish.. Drawdown income which may be subject to higher rates of income tax. Accept that running out of money may occur if fund runs out. Accept that as there is no Minimum Income Requirement they may have no secured lifetime income. All the reward; all the risk ANY RISK WARNINGS? APR 15

52. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Why annuities will still be popular 52 Cautious married couple who don’t wish to take too much risk with their retirement provision. WHAT ISSUES SHOULD THEY CONSIDER? When does the client run out of money? Stable Annual Growth Rate net of all charges 0%1%2%3%4%5% Years of sustainable income202225293762 Assume they start with £100,000 and take income of £5,000 at the start of each year, based on a range of growth rates, when do they run out of money?

53. New era drawdown

54. Retirement Desk 08000 850 250 I For Financial Adviser Use Only From 6 April 2015, those aged 55 and over: Accessing money purchase pension savings 54 Flexi-access drawdown – any amount, any time or Uncrystallised funds pension lump sum Purchase a lifetime annuity, or Take a scheme pension Pension Commencement Lump Sum

55. Retirement Desk 08000 850 250 I For Financial Adviser Use Only From 6 April 2015: Accessing money purchase pension savings 55 No limit on drawdown income Minimum Income Requirement abolished Those currently in “capped” drawdown can convert to a new drawdown fund known as “flexi-access drawdown”, once arranged with their scheme. Existing “capped” drawdown will not automatically convert to “flexi-access drawdown” – full annual allowance remains until exceed 150% GAD. Reduced annual allowance of £10,000 for those who exceed the “cap” or accessing “flexi-access drawdown” Existing “flexible drawdown” to become “flexi-access drawdown” Existing flexible drawdown clients get the new £10,000 annual allowance.

56. Retirement Desk 08000 850 250 I For Financial Adviser Use Only From 6 April 2015: Means able to take a lump sum (part tax free; part taxed) without designating part of the fund to drawdown or annuity purchase. Accessing money purchase pension savings 56 Pension commencement lump sum remains available on: Annuity purchase Taking a scheme pension Designating funds into drawdown pension. Accessing pension fund directly will be known as “uncrystallised funds pension lump sum(s)” 25% taken tax-free (ie: instead of a PCLS). Remainder will be taxable as if it were a pension.

57. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Income can go down as well as up. No longer a requirement to give the member the opportunity to select the insurance company (although schemes can still offer this if they wish). A guarantee period can be for any period – 10 year restriction removed. Frequency of payments must be at least annually. Annuity must be payable for the life of the member. From 6 April 2015: Changes to lifetime annuity purchase 57

58. Retirement Desk 08000 850 250 I For Financial Adviser Use Only For existing clients already in drawdown: From 6 April 2015: Changes to drawdown pensions 58 As now, drawdown pension will still be available in the form of: Income withdrawal, or Short-term annuity (ie: for up to 5 years). Under income withdrawal options are: Capped drawdown – for existing clients in drawdown Flexi-access drawdown – existing flexible drawdown and those who exceed capped drawdown limit (150% GAD).

59. Retirement Desk 08000 850 250 I For Financial Adviser Use Only New funds designated as drawdown pension will be flexi-access drawdown funds. Up to a third of the value of funds designated as flexi-access drawdown will be available as a PCLS (as now) basically 25%! Accessing funds as flexi-access drawdown will trigger money purchase annual allowance rules From 6 April 2015: New drawdown pensions 59

60. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Client in Flexible drawdown, fund converts to flexi-access drawdown funds on 6 April 2015. From 6 April 2015: Client already in Flexible Drawdown on 5 April 15 60 New money purchase annual allowance of £10,000 will apply from that date. No carry forward from tax years since elected for flexible drawdown.

61. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Client in Capped drawdown – 2 options available: From 6 April 2015: Client already in Capped Drawdown on 5 April 2015 61 1 Can remain in capped drawdown and if income remains within GAD limits, retain annual allowance of £40,000. 2 Can convert into flexi-access drawdown fund although accessing this will trigger money purchase annual allowance rules. However, if client has other arrangements (uncrystallised) not in capped drawdown are then designates these into drawdown it will be flexi- access drawdown fund and accessing this will trigger money purchase annual allowance rules.

62. Retirement Desk 08000 850 250 I For Financial Adviser Use Only 3 Cannot have PCLS in connection with an uncrystallised funds lump sum 1 25%* of the uncrystallised funds lump sum will be paid tax-free (not PCLS but tested against LTA in same way) 2 Remainder of the uncrystallised funds pension lump sum taxed as pension income. New way of accessing pension funds without first designating funds as available for drawdown pension: From 5 April 2015: Uncrystallised funds pension lump sums 62 Taking uncrystallised funds lump sum will trigger money purchase annual allowance rules. * May differ if client is aged 75 or over.

63. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Uncrystallised funds pension lump sums 63 Qualifying conditions: Only available from a money purchase arrangement. Only available from Normal Minimum Pension Age (55) unless ill-health conditions are met Must be payable from uncrystallised rights (not drawdown, scheme pension or lifetime annuity). Under age 75 when paid: Must have available lifetime allowance to cover amount of the uncrystallised funds lump sum. Age 75 or above when paid: Must have some lifetime allowance available. Cannot have an uncrystallised lump sum greater than available PCLS

64. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Lifetime allowance considerations 64 Individuals under age 75: Full amount of the uncrystallised funds pension lump sum is tested against available lifetime allowance as BCE6. The amount of the BCE6 is the lump sum paid. Individuals must have available lifetime allowance to cover full amount of the uncrystallised funds lump sum

65. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Lifetime allowance considerations 65 Individuals age 75 and over: Must have some lifetime allowance available If the lump sum is fully within the individual’s remaining lifetime allowance, it will all be treated as an uncrystallised funds pension lump sum (ie: 25% of the lump sum will be tax-free and the remainder will be taxable as pension income). If the lump sum is more than the individual’s remaining lifetime allowance, the amount that can be taken tax-free, is restricted to 25% of the remaining lifetime allowance, with the rest being taxable as pension income There is no BCE triggered on payment of the lump sum – as 75 or over

66. How equity release can help

67. Retirement Desk 08000 850 250 I For Financial Adviser Use Only The Perfect Storm? 65 The need for Equity Release 67 Changing demographics People living longer | The ‘SKI’ generation A new retirement landscape Decline of OPS and State pension provision Uncertain markets Low inflation | poor annuity rates | volatile conditions

68. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Equity Release Average house price in the UK has risen from £30,898 in 1983 to £169,003 in 2013* Customers aged 65 – 75 are driving the growing uptake** More single men are using equity release** Equity release is gradually becoming a mainstream financial planning tool, although there is still a lack of consumer awareness** *Halifax House Price Index 2013 ** Equity Release Council – Market Report Spring 2014 97% of customers now go through independent financial advisers** 68

69. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Recent trends 69 The ‘luxury purchase’ is showing signs of recovery: Purchase of holiday home/ caravan/ motorhome Property development Financing business ventures Extended holidays As well as the usual, family support, house deposits, weddings and divorces!

70. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Unusual cases 70 Face lift Cosmetic dentistry Solar panels Extended holidays Charity rally driving trip Donation to medical research

71. Retirement Desk 08000 850 250 I For Financial Adviser Use Only How we can help? 71 If you are not authorised to advise on equity release our Adviser Development Programme offers: Half day workshop looking at equity release opportunities Revision webinars to help with qualification Masterclass to assist in marketing and business development – half day workshop once qualified. We offer the following equity release products: Lump sum lifetime mortgage Drawdown lifetime mortgage If you would like us to contact you about either our products or our Adviser Development Programme please tick appropriate box on feedback sheet.

72. Retirement Desk 08000 850 250 I For Financial Adviser Use Only To understand the: The Learning Outcomes 72 Key stages in a client’s retirement journey and the advice implications Main considerations when advising on pension consolidation. NEW advice requirement for final salary pension transfers: Need for advice to clients in the “transitional period” up to 5th April 2015. Need for advice from 6th April 2015 and the risks clients face. Reasons equity release is likely to become more popular. Which clients can do this? Which clients cannot? Which clients should not! Comparing at retirement transfers with pre-retirement transfers Learning Outcomes can be validated through the multiple choice questions ANY QUESTIONS ?

73. For financial adviser use only Flexible Guarantee Funds Securing your clients retirement

74. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Now available for retirement planning via LV= Flexible Transitions Account Flexible Guarantee Funds Choice of Competitively priced funds Flexible Guarantee Financial Strength Guaranteed Death Benefit Smoothed Fund Performance Mutual Bonus Ideal for clients in accumulation or drawdown 74

75. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Wide range of terms and competitive charges Guarantee charges Fund option5 years6 years7 years8 years9 years10 years Cautious Series 21.70%0.90%0.70%0.50%0.40%0.25% Balanced Series 2n/a2.20%1.70%1.30%1.00%0.80% Managed Growthn/a 2.50%2.00%1.70%1.50% Competitive costs for comfort of guarantee and ability to lock-in gains Once bought, the charge remains the same throughout the guarantee term We commit to always offer at least a 10 year guarantee option on all three funds Ideal opportunity to demonstrate added value at customer reviews 75

76. Retirement Desk 08000 850 250 I For Financial Adviser Use Only Retirement specialists from LV=Retirement Solutions LV=Here to help with retirement planning 08000 850 250 retirement@lv.com Contact our Retirement Desk on Please complete the Feedback Sheet 76

77. Any questions?

78. This is for financial advisers only Not to be used after 31 December 2014 This presentation is based on our understanding of current legislation as at 1 February 2014 applicable in England and Wales and HM Revenue & Customs practice which may change in the future. We cannot accept responsibility for any action arising as a result of the information contained in this presentation. Liverpool Victoria Friendly Society Limited, Keynes House Tilehouse Street, Hitchin, Herts, SG5 2DX. LV= and Liverpool Victoria are registered trade marks of Liverpool Victoria Friendly Society Limited (LVFS) and LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria group of companies. LVFS is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. NM Pensions Trustees Limited, (registered in England No. 4299742), act as Trustees and Scheme Administrators. Authorised and regulated by the Financial Conduct Authority, register number 463402. LV= Equity Release Limited, (registered in England No. 1951289), authorised and regulated by the Financial Conduct Authority. Registered address for all companies: County Gates, Bournemouth BH1 2NF. Tel: 01202 292333 21443939 8/14