"With all the complex changes around pensions in recent years, having the tools available to demonstrate what clients can save towards their retirement is more important than ever."
- Andy Tully, technical services director at Nucleus
Nucleus has extended its range of technical product resources for advisers with the addition of several updated pension tools.
Advisers will be able to work out a client’s annual allowance, including any available carry forward, and also demonstrate how salary sacrifice can boost pension savings.
Annual allowance
The annual allowance calculator helps individuals work out how much they may be able to save into their pension scheme(s) in the current tax year without incurring an annual allowance tax charge.
Advisers will need details of their client’s pension savings (including defined benefit accrual) going back at least three tax years, as well as their tapered annual allowance amounts, if applicable.
The calculator will consider the contributions already paid and any unused allowance from the previous three tax years.
Salary sacrifice
With the salary sacrifice tool, clients will get a better idea of what their take home pay could look like if they decide to give up part of their salary in exchange for pension contributions.
The calculator considers the impact on income tax and national insurance. It will allow advisers to compare relief at source and net pay/salary sacrifice.
Advisers will also be able to edit the client’s personal allowance, confirm where they are in the UK for tax purposes and specify whether employer national insurance savings will be passed to the client and at what percentage.
There is also an option to specify alternative pension arrangements as a way of comparing different pension contribution scenarios.
The calculators are available to advisers within the Nucleus Illuminate Technical hub. There, advisers will also be able to access technical factsheets on a range of different subjects to do with pensions, investments, tax and trusts.
Andy Tully, technical services director at Nucleus, said: “Advisers' time is precious, as is their clients' time, so we want to help wherever possible.
“Within the Nucleus Group we have deep pensions technical expertise. We aim to provide the products and services advisers need to create and manage a holistic financial plan for their clients, so they can achieve their investment goals and ultimately help make their retirement more rewarding.
“With all the complex changes around pensions in recent years, having the tools available to demonstrate what clients can save towards their retirement is more important than ever."
