Defined Benefit Analysis


With gilt yield dropping to an all time low! (they have started to go back up this month) I have been SO busy with DB pension analysis reports and there is a lot of pressure that these are completed quickly quickly quickly! The struggle starts from the time information is requested by the administrators and often many things are missed due to the complexity of these schemes. With critical yield figures which are produced from the TVAS reports less important nowadays I am trying to think of new ways to show the client WHY our advise is our advice through analysis and calculations but struggling... I have tried to include analysis on sustainable withdrawal rates but struggle as people use different assumptions and figures...

Can anyone help with presenting and what to include when looking at SWR's?

Also has anyone else got any idea ore examples of what mathematical analysis they use when reporting on DB schemes?

Thank you!




  • benjaminfabibenjaminfabi Moderator
    edited October 2016

    Are you able to use any sort of cash flow? This would help a lot. I don't tend to use anything other than the TVAS and a simple cash flow. 

    Also, both O&M and Selectapension have drawdown options in the TVAS. These are very useful. I don't often praise Selectapension and although its TVAS system is less complete than O&M the hurdle rate and drawdown yield figures are a really good part of the output. 

    But before that, what is the need to prove the advice with calculations and analysis at the front and centre? What are the client's circumstances? What does the existing scheme do to meet them? What does the transfer do? A lot of these options can be taken from the standard TVAS, such as pcls increase, early retirement (we see a lot looking to bridge early until SPA or other secure benefits come into payment), security in the event of employer insolvency. Others often don't need any calculations, such as death benefits, scheme income surplus to requirements and just being taxed unnecessarily etc. 

    Can you consider less of the mathematical analysis and more of linking to what matters to the client. Certainly have a file that shows calculations that stack up, but report it in terms of objectives and why one is better than the other. 

    Hope that helps a bit. 


    Benjamin Fabi FPFS
    Chartered Financial Planner 
  • Ditto to Ben. We issue an options report before going near recommendations so that the client understands what their DB is actually all about and that's issued with the TVAS. Then recommendations come with a cash flow. Lengthy process, but absolutely keeps it with the client front and centre and not all about £££.

    PS did you read Ben's recent article in Professional Paraplanner about this? 
  • Thank you Ben and Suse for your helpful comments. I heavily focus on the clients circumstances, objectives and go into a lot of detail re the scheme so the client can really understand what they have.

    I just feel that often the clients want to see more figures to help support the case, regardless of whether the recommendation is to stay or transfer the accrued benefits away.

    Thanks again


Sign In or Register to comment.