This document provides an overview and summary of a company pension scheme presentation. It discusses why employees should save for retirement now rather than delaying, as life expectancies are increasing and state pensions may not provide enough income. It outlines the sources of retirement income and describes the company pension scheme being presented, including how much employees can contribute, the investment fund options, and how benefits can be taken at retirement.

1. New Group Pension Scheme Member
Presentation 2011
Presented by
Tony Theokli

2. Areas for discussion
 Why save now?
 About your company pension scheme?
 What action to take?

3. YouGov Sixth Sense report
- November 2010
Source: http://today.yougov.co.uk/life/what-stresses-you-out
For intermediary use only – not for use with your clients

4. Pensions
Interesting?

5. Sources of retirement income

6. Sources of retirement income

7. How Did We Get Here?
A different view towards saving and spending
Shopped at the “Co-Op”
Dined out only on her birthday
Hid cash in her home
Hated to turn on the heating
Covered couches in plastic
Sewed patches on trousers
Wouldn‟t pay to have her car washed
Re-used tea bags

8. How Did We Get Here?
A different view towards saving and spending
 Buys designer clothes
 Dines out frequently
 Stops daily at Starbucks
 Travels first class
 Leases a new car every two years
 Valets his car regularly
 Holidays in the Caribbean
 Buys the latest and greatest electronics

9. The Result
A generation that is over-borrowed,
under-saved, unprepared, and . . .
is ready for its comfortable retirement.

10. ©2006 Bates Millfield

11. Why save now?
“I‟m too young to
start a pension”
“I don‟t understand all
this financial stuff”
“My money‟s tied up
with day-to-day living
expenses – I can‟t
afford to save at the
moment”
“I‟m too old to start a
pension plan”
“I‟ll be looked after by
the government – I
don‟t need to worry
about it now”

12. Why save now?
“I’ll be looked after by the government – I don’t need to worry about it now”
• People are living longer
• Your expenses may not reduce as much as you think
• The State Pension may not be enough
State Pension
Basic State Pension:
 £102.15 per week - single person
S2P Pensions
(Previously Credit
 £163.35 per week - married couple
Source: HM Revenue & Customs 2011* SERPS)
* Assumes a full national insurance contribution record.
www.thepensionservice.gov.uk/home.asp

13. The potential cost of delay
“I can’t afford to save at the moment”
£249,000
Account Value
Starts now and
contributes £100 a
month net for 40 A
years
Waits 10 years and
tries to catch up by
contributing £133.33
a month net for 30
B
years
£167,000
Account Value
Today 10 years 20 years 30 years 40 years
This illustration demonstrates the effect of compound interest on current versus delayed investments. It assumes
contributions are made at the end of the month and that the investment earns a hypothetical 6% p.a. nominal rate
of return compounded monthly (6.17% APR) and 20% tax relief. It does not reflect the return of any investment,
which will fluctuate and does not reflect charges.

14. Your retirement
Life expectancy for men and women from birth
100
80
Number of years
Men 60
Women
40
20
0
1850's 1907 1957 2007
Year
Source: Office for National Statistics & Government Actuary‟s Department

15. Fact!
Life expectancy in the UK is currently increasing at
a rate of 5 hours every day
Being 79 today is the physical equivalent of being
65 in our grandparent‟s generation
The first person to reach age 150 is already alive
today!!!!!
Source: The Observer, June 10, 2007

16. About the plan
Look forward to a better retirement
If you join the Plan:
• You have an individual policy with Scottish Widows
• You decide how much you pay
• You decide where you invest your contribution
• You decide at what age you draw the benefits
• Payroll deduction facility makes the
payment process simple

17. How the plan works
Contributions: Tax free cash
You + HMRC (optional)
Pension
account
on retirement Remainder of
Investment the fund used to
returns * provide taxable
pension income
* Please note that the value of the funds, including any default fund, may go down as well as up and you may also
receive less than the amount contributed by you.

18. Your contributions
You pay £160.00 pm
Basic rate tax relief added £40.00 pm
Total Gross Contribution £200.00 pm
Example funding – for illustration purposes only
Higher rate taxpayers would also receive an additional 20% tax refund from HMRC
resulting in a Net contribution of £120.00 per month

19. How much can you save?
In the 2011/2012 tax year…
You can save the greater of £3,600 and 100%* of your total earnings
This is subject to an annual limit of £50,000*…
…And an overall lifetime allowance of £1.50 million*
* For the 2011/2012 tax year. The annual and lifetime allowance limits apply to the total of all an individual’s
pension arrangements. These include contributions made by an individual and their employer. There are tax
charges where the above allowances are exceeded.

20. Investment basics
Reap the rewards from investments
Return
Also known as „stocks and shares‟,
equities represent part ownership of a
Equities company, including its earnings and
assets
Also known as „gilts‟ when issued by the
UK Government, bonds represent loans to
Bonds companies or governments that are repaid
with interest to investors over time
Cash investments offer the most security
but may not grow fast enough to keep pace
Cash with inflation
Risk

21. The road to retirement
How long do you have until retirement?
5
years Retirement
10-15
years
>20 Bonds/Cash
years
Distance
Bonds
Equities/Bonds
Equities
This graphic is not intended to recommend a specific course of action for you. Each
person would have to consider their own attitude to risk in the context of their overall
retirement and private financial planning.

22. Investment funds choice
Fund E
Fund D
Fund C
Fund B
Fund A

23. Asset classes
Property
25%
Cash
25%
Equities
25%
Gilts
25%

24. Geographical spread 40
25
20
5 5
5 UK
Europe
USA
Japan Far East
Global Emerging
Markets

25. The default investment fund
There is a default fund, where your contributions will
be directed, if you don‟t actively select where you
wish to invest…
Scottish Widows Balanced Managed
• Note: This may not meet your needs or attitude
towards investment risk
• The annual management charge for this
fund is 1.00% pa

26. Our approach to spreading the investment risk
Portfolio diversification
Fund 1
Fund 2
Fund 3
Fund 4
Fund 5
Fund 6
Fund 7
Fund 8
Fund 9
Fund 10
Average annual management charge of 1.79% pa

27. Investment Funds Choice
Higher risk,
higher return
Adventurous
potential
Low Adventurous
Moderate to Low Adventurous
Low Moderate to Moderate
Cautious to Moderate
Very Cautious to Cautious
Lower risk, No Risk
lower return
potential

28. Taking your benefits
Any time from age 55 – no upper age limit
You do not need to retire from employment
You decide how to take your benefits
25% Tax Free Lump Sum
Annual Income
+ Reduced Annual
For Life
Income For Life

29. What happens if .....
You leave your Employer?
• You can take your benefits with you
• No cost or penalty applied to your fund
You die before reaching retirement?
• 100% of the fund value paid as a tax free lump sum
• Remember to complete you nomination of beneficiaries form and keep this
updated

30. The next steps
Thoroughly read the information pack, sample illustration, fund booklet and
application form
Decide if you wish to join
Decide how much you want to contribute
Decide on investment funds
Arrange a 1-1 if required

31. How do you join?
Complete the application paperwork within your pack
Return the paperwork to Tony Theokli
When you join you will receive…
• A „Cooling-off‟ period
• Policy documents
• Internet access to your account to view policy details, amend basic details, access information,
and switch funds
Each year you will receive…
• A Statement of account
• Annual meeting

32. Get your future on track today !
Q & A‟s

33. Thanks for listening
Temple Bar Asset Management Ltd
Sherborne House Direct Line: 020 7743 9113
119 Cannon Street Mobile: 07770 593943
London Direct Fax: 0844 5791814
EC4N 5AT Email: tony.theokli@templebar-am.com

34. Important information
Temple Bar Asset Management Limited are independent financial advisers.
We provide advice to Simply Business and its employees on the company pension
scheme.
This presentation is for information purposes only and should not be interpreted as
a recommendation or advice.
This presentation is based on our understanding of current pensions legislation,
taxation law and HMRC practice.
Benefits are not guaranteed and the value of investments may go down as well as
up.
Temple Bar Asset Management Limited is a trading name of Honister Partners
Ltd. Honister Partners Ltd is an appointed representative of Sage Financial
Services which is authorised and regulated by the Financial Services Authority.