Technical summary

The technical summary provides a quick reference point for key information about The Retirement Account. This useful information can also be found on a simple document, which you can download here

Key

TRA = The Retirement Account PD = Pension Drawdown (crystallised)
PS = Pension Savings (uncrystallised) GA = Guaranteed Annuity

The Retirement Account

Minimum transferred funds Overall £20,000 after tax free cash and adviser fee (£1,000 per ceding scheme). No maximum
Minimum crystallisation Uncrystallised (IVP) transfers only = £2,000 with £1,000 retained in PD (does not apply if GA is purchased at outset) Mixed IVP and crystallised (IDD) transfers = no minimum crystallisation requirement
IDD transfers-in Each transfer must be held in a separate arrangement under the Account (see Product Charges)
Minimum GA purchase price £10,000 (within overall TRA £20,000 minimum)
Maximum GA purchase price £3 million (applies to all GA purchases with Retirement Advantage*)
GA rate guarantee 14 days from the date of the next Retirement Advantage rate change
GA income reinvestment Can be in drawdown investment funds or cash account**
Minimum TRA age at entry Age 55 unless there is an entitlement to take benefits at an earlier protected age, in which case 50
Maximum age at entry No maximum age for PD/PS but age 85 for GA
Minimum GA dependant age Age 35 (assumed healthy if below 50, otherwise underwritten)
Maximum GA dependant age Age 85
Investment Fund choice Same range of funds available to PS and PD. Different funds can be chosen for each
*Also includes GA purchases with MGM Advantage. **Insured fund with interest calculated on balances daily and added monthly at the bank of england base rate minus 1.25%. If a negative amount then no interest will be due.

Minimum TRA income level £20 (no maximum)
Minimum PD ad hoc withdrawal £10,000 (within overall Retirement Account minimum*)
Income frequencies Monthly, quarterly or yearly
Income payment dates 12th, 20th and 28th (or earlier if payment date falls on a weekend or bank holiday)
Payment of GA income 28th of the month implementation deadline at outset means monthly payments are on average 3 weeks in arrears. First quarterly or annual payment may also be proportionate
Payment method BACS

Money Purchase Annual Allowance (MPAA)

MPAA is triggered if taxable income (annuity or drawdown) is paid directly to the client from TRA. This is due to its flexi-access drawdown status.

Dependant’s income 50%, 66%, 75% or 100% of annuitant’s income. Payable only to named dependant
Income Guarantee Up to 30 years (whole years). Payable only to named dependant if combined with Dependant’s Income
Money Back Guarantee Single life and joint life second death basis. Up to 100% of the purchase price. Payable to named dependant or other beneficiary
Pension increases Fixed increases of up to 10% (1% increments) or linked to RPI. For mixed GA and PD cases, pension increase only apply to the GA

Minimum additional transfer payment £5,000 (£1,000 per ceding scheme)
Minimum additional GA purchase price £5,000
Minimum crystallisation of PS into PD £2,000
Fund switch charge No charge but we reserve the right to levy a charge if more than twelve switch requests are received in a 12 month period
Transfers out Partial or full transfer of PD and/or PS funds available

Fee options Initial fee (% or £): If £ amount deducted from PD funds. 
If % deducted from PD and PS funds
Ongoing fees (%) based on total investment in PD and PS
Ad hoc fee. Can be taken from PD or PS

Adviser fee payment date

20th of each month (or earlier, for example if your payment date falls on a weekend)

Drawdown charge £150, currently applies to the first crystallisation of any uncrystallised funds (IVP transfers or PS). Also applies to each individual arrangement comprising an IDD transfer
Annual charge (tiered). Applies to all investment funds including the cash account

Up to £25k - 0.6%

Between £25k and £75k - 0.3%

Between £75k and £150k - 0.2%

Excess above £150k - 0.1%

Example of how the charge works

£170,000 invested in TRA after tax free cash, charges and adviser fee. £100,000 allocated to PD and £70,000 allocated to PS.
Pension Drawdown charge = £150
Tiered annual charge Amount subject to charge Charge % Charge £
Tier 1 - Up to £25k £25k 0.6% £150
Tier 2 - £25k - £75k £50k 0.3% £150
Tier 3 - £75k - £150k £75k 0.2% £150
Tier 4 - Excess above £150k £20k 0.1% £20
Total annual charge £470

As a percentage of total investment (£170k) 0.276% plus fund management charge (OCF).

PS & PD investment funds Lump sum payable or instead funds can be held as PD within a Beneficiary Account. If the latter any PS is converted to PD
Money Back Guarantee Lump sum payable or instead funds can be held as PD within a Beneficiary Account
Dependant’s income / income guarantee Beneficiary Account established for payment of income. If both are payable the maximum income is the level of the deceased annuitant’s income
Income guarantee commutation Income can be commuted for discounted lump sum. If dependants income payable as well, only the excess income over the dependant’s income amount can be commuted. Commuted income can be held as PD within Beneficiary Account
Minimum age for Beneficiary Account No minimum age

Fund charges

Retirement Advantage fund name Management style Risk profile AMC OCF

Logos_AXA IM

AXA Distribution

Active Balanced 0.85% 0.86%
This fund aims to achieve growing income with some prospects for capital growth over the medium to long term.

AXA-Framlington-250x85

AXA Framlington Managed Balanced

Active Balanced 0.75% 0.80%
This fund aims to achieve capital growth through investments in a broad range of assets anywhere in the world,
balancing risk and return for investors.

Logos_Canada Life Investments

Canlife TRA Managed (0%-35% Shares)

Active Cautious 0.31% 0.31%
The fund aims to achieve long term capital growth from a portfolio of UK fixed interest securities, UK commercial property and UK shares. Up to 30% of the fund may be invested in UK shares, usually those with a higher than average yield.

Canlife TRA Portfolio 3

Active Cautious 0.36% 0.36%
The fund aims to achieve long-term capital growth and income whilst seeking to remain within a defined risk band by aligning its asset allocation with Dynamic Planner risk profile 3. This diversified fund of funds invests mainly in fixed income securities and cash but also includes UK and international shares and UK commercial property. The fund implements the asset allocation by investing primarily in actively managed funds from Canada Life Investments’ in-house fund range.

Canlife TRA Portfolio 4

Active Cautious 0.43% 0.43%

The fund aims to achieve long-term capital growth and income whilst seeking to remain within a defined risk band by aligning its asset allocation with Dynamic Planner risk profile 4. This diversified fund of funds invests about half in fixed income securities and cash and about half in UK and international shares and UK commercial property. The fund implements the asset allocation by investing primarily in actively managed funds from Canada Life Investments’ in-house fund range.

Canlife TRA Managed (40%-85% Shares) 

Active Balanced 0.40% 0.40%
The fund aims to provide capital growth from a balanced portfolio of collective investment schemes, covering markets throughout the world, enabling investors to gain exposure to a diversified portfolio of fixed interest, UK and international equities and cash.

Canlife TRA Portfolio 5

Active Balanced 0.51% 0.51%
The fund aims to achieve long-term capital growth and income whilst seeking to remain within a defined risk band by aligning its asset allocation with Dynamic Planner risk profile 5. This diversified fund of funds invests mainly in UK and international shares and UK commercial property with about a third in fixed income securities. The fund implements the asset allocation by investing primarily in actively managed funds from Canada Life Investments’ inhouse fund range.

Canlife TRA Portfolio 6

Active Balanced 0.57% 0.57%
The fund aims to achieve long-term capital growth and income whilst seeking to remain within a defined risk band by aligning its asset allocation with Dynamic Planner risk profile 6. This diversified fund of funds invests primarily in UK and international shares with the remainder in fixed income securities and UK commercial property. The fund implements the asset allocation by investing primarily in actively managed funds from Canada Life Investments’ inhouse fund range.

Canlife TRA Portfolio 7

Active Adventurous 0.61% 0.61%
The fund aims to achieve long-term capital growth and income whilst seeking to remain within a defined risk band by aligning its asset allocation with Dynamic Planner risk profile 7. This diversified fund of funds invests predominantly in shares, with a substantial portion invested overseas. The remainder is invested in fixed income securities and UK commercial property. The fund implements the asset allocation by investing primarily in actively managed funds from Canada Life Investments’ in-house fund range.

Threadneedle Dynamic Real Return

Active Cautious 0.85% 1.04%
The fund aims to achieve a positive real rate of return from capital appreciation over the medium to long term, 4%
above the rate of inflation (defined as the Consumer Price Index). Regardless of market conditions, it also aims to
provide a positive return over a maximum of 3 years.
Threadneedle Managed Equity Active Adventurous 1.00% 1.16%
This fund aims to provide a return of capital growth and invests at least two-thirds of assets in worldwide equities via other Threadneedle funds. There is also exposure to fixed income securities, cash, money market instruments and derivatives.
Invesco-perpetual-250x229
Invesco Perpetual Distribution Active Cautious 0.92% 0.92%
This fund aims to achieve a combination of income and capital growth over the medium to long term by investing globally in equities, bonds and other assets. No more than 60% of the fund will be invested in equities.
Insight---Logo-250x190

Insight Liquidity

Active Cash 0.10% 0.10%
This fund aims to preserve capital and daily liquidity, and will typically invest in bank deposits, certificates of deposit, and other secure assets.
Investec AM Logo Black CMYK-High res PRINT

Investec Multi-Asset Protector 2

Active Cautious Protected 0.80% 1.06%
This fund aims to provide capital growth from a multi-asset portfolio and to deliver protection at 80% of the investment’s highest price to date (however this is not guaranteed). The fund invests in UK and global equities, bonds, property, commodities, cash and alternatives. From time to time the allocation to low-risk instruments and cash will be increased.
Janus-Henderson-rgb---351x62px

Janus Henderson Cautious Managed

Active Cautious 0.74% 0.83%
This fund aims to provide income and long-term capital growth by investing in a combination of equities and bonds worldwide. No more than 60% of the fund will be invested in equities.
Janus Henderson Global Equity Income Active Adventurous 0.85% 0.95%
This fund aims to achieve an income better than the MSCI World stockmarket index with the potential for long-term capital growth.
Jupiter-250x104
Jupiter Merlin Balanced Portfolio Active Balanced  0.85% 1.73%
This fund aims to achieve long-term capital growth with income by investing mainly in other funds across several management groups. The underlying funds invest in international equities, fixed interest stocks, commodities and property.
Jupiter Merlin Growth Portfolio Active Adventurous 0.85% 1.83%
This fund aims to achieve long-term capital growth by investing mainly in other funds across several management groups. The underlying funds invest in international equities, fixed interest stocks, commodities and property, with a core in the UK.

Exclusive to The Retirement Account
 Protected Index Portfolio Passive Cautious Protected 0.75% 0.86%
The objective is to provide investors with long term capital growth from a multi-asset portfolio and to deliver protection at 80% of the highest net asset value achieved by the fund.
Vanguard---Logo-x250x72
Adventurous Index (Vanguard/Insight) Passive Adventurous 0.25% 0.25%
To achieve long term capital growth by managing the asset allocation of a portfolio of predominantly UK and overseas equities.
Balanced Index (Vanguard/Insight) Passive Balanced 0.25% 0.25%
To achieve a combination of capital growth and capital preservation by managing the asset allocation of a portfolio of predominately equities and fixed income.
Cautious Index (Vanguard/Insight) Passive Cautious 0.25% 0.25%
To achieve capital preservation with some opportunity for growth in the medium term by managing the asset allocation of a portfolio of predominantly fixed income and cash with some equities.

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