© copyright mercer employee benefits limited 2007 mercer employee benefits limited is authorised...
TRANSCRIPT
![Page 1: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/1.jpg)
© Copyright Mercer Employee Benefits Limited 2007
Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority.Registered in England No. 404370. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.
Making
YourChoices
Presentation Title
Date
![Page 2: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/2.jpg)
Mercer Employee Benefits Limited 2
What I/we will cover today
Reminder of the changes
Deciding how much to contribute
What do you need to consider about investments
The investment funds
The next steps
Questions and answers
![Page 3: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/3.jpg)
Mercer Employee Benefits Limited 3
A brief summary of the changes
Pension benefits build up through Investor Plan from 01/01/2008 on enhanced basis
Pensions benefits built up before 01/01/2008 are protected and will increase
The Company will pay off the deficits
From 01/01/2008 you will no longer build up a pension from the Defined Benefit section of the Siemens Benefit Scheme
Death in service and ill health benefits protected at minimum of current amount for next 5 years
![Page 4: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/4.jpg)
Mercer Employee Benefits Limited 4
How does defined contribution work?
![Page 5: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/5.jpg)
Mercer Employee Benefits Limited 5
Contributions
![Page 6: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/6.jpg)
Mercer Employee Benefits Limited 6
Contribution type
Company match
Tax relief NI saving Flexibility to change
The types of contribution
Matched
AVC
×
× ×
××EDC
![Page 7: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/7.jpg)
Mercer Employee Benefits Limited 7
What can you afford to pay?
Maximising the Company match
The earliest you can access your savings is age 50 (55 from 6th April 2010)
What are your other assets?
When do you want to retire?
Deciding how much to contribute
![Page 8: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/8.jpg)
Mercer Employee Benefits Limited 8
![Page 9: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/9.jpg)
Mercer Employee Benefits Limited 9
![Page 10: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/10.jpg)
Mercer Employee Benefits Limited 10
![Page 11: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/11.jpg)
Mercer Employee Benefits Limited 11
![Page 12: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/12.jpg)
Mercer Employee Benefits Limited 12
BasicsInvestment
![Page 13: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/13.jpg)
Mercer Employee Benefits Limited 13
Savings RiskSavings Risk
Volatility RiskVolatility Risk
Inflation RiskInflation Risk
Investment risk is the chance that your investment will be lower than you expect
Investment risk
![Page 14: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/14.jpg)
Mercer Employee Benefits Limited 14
Cash investments offer the most security but may not grow fast enough to keep pace with inflation
Also known as ‘gilts’ when issued by the UK Government, bonds represent loans to companies or governments that are repaid with interest to investors over time
Also known as ‘stocks and shares’, equities represent part ownership of a company, including its earnings and assets
Equities, bonds and cash are the building blocks of most investmentsEquities, bonds and cash are the building blocks of most investments
Equities
Bonds
Cash
Investment choices
![Page 15: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/15.jpg)
Mercer Employee Benefits Limited 15
Please note: Any statement of past performance of any particular fund is not a guide to future performance. Also investments/funds denominated in a foreign currency will fluctuate with the value of the currency and any income from foreign investments will fluctuate in value.
Please note: Any statement of past performance of any particular fund is not a guide to future performance. Also investments/funds denominated in a foreign currency will fluctuate with the value of the currency and any income from foreign investments will fluctuate in value.
Cash
High ReturnEquity
Bonds
Low ReturnHigh RiskLow Risk
Investment choices
![Page 16: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/16.jpg)
Mercer Employee Benefits Limited 16
Projections are based on Market Interest Rate Expectations.
Source – Bank of England, CPI Fan Chart - May 2007
Inflation risk
![Page 17: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/17.jpg)
Mercer Employee Benefits Limited 17
Consider how long you have until retirement…
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.
The road to retirement
![Page 18: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/18.jpg)
Mercer Employee Benefits Limited 18
Passive (Index-tracker)
Aims to track the performance of the market (even when it falls)Reduces risk of performing less well than a market
Investment management fees are lower
Active-management:
Aims to outperform the marketPotentially better returns than Index Tracker but risk that could do worse
Investment management fees are higher
Passive or Active
![Page 19: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/19.jpg)
Mercer Employee Benefits Limited 19
The equity funds
![Page 20: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/20.jpg)
Mercer Employee Benefits Limited 20
Property, bonds and cash
![Page 21: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/21.jpg)
Mercer Employee Benefits Limited 21
Specialist funds
![Page 22: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/22.jpg)
Mercer Employee Benefits Limited 22
Lifestyle Strategy
Private Fund
Fixed Annuity Target
Cash
![Page 23: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/23.jpg)
Mercer Employee Benefits Limited 23
Sign and return ‘Employment Contract Amendment’ forms and return by 24th October 2007
My choice enrolment process (details sent out in last week of October):Decide how much to pay
Choosing where to invest (‘Lifestyle’ or ‘Freestyle’)
If select ‘Freestyle’, additional form issued in first week of December
The next steps
![Page 24: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/24.jpg)
© Copyright Mercer Employee Benefits Limited 2007
Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority.Registered in England No. 404370. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.
![Page 25: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/25.jpg)
Mercer Employee Benefits Limited 25
![Page 26: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/26.jpg)
Mercer Employee Benefits Limited 26
![Page 27: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/27.jpg)
Mercer Employee Benefits Limited 27
Remember, if you select the same contribution
rate your take-home pay will go down
![Page 28: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/28.jpg)
Mercer Employee Benefits Limited 28
![Page 29: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/29.jpg)
Mercer Employee Benefits Limited 29
![Page 30: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/30.jpg)
Mercer Employee Benefits Limited 30
Helpdesk:email: [email protected]; external tel: 0845
6039972; internal tel: x5555 – option 6
Calculators and modellersPensions modeller: http://siemens.pensionline.org
Contributions calculator: http://intranet.css.siemens.co.uk/pensions
IFA Advice:First £200 reimbursed, claim form returned by 30th November 2007
Additional Support Available?
![Page 31: © Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered](https://reader035.vdocuments.us/reader035/viewer/2022081519/56649de85503460f94ae32ef/html5/thumbnails/31.jpg)
Mercer Employee Benefits Limited 31
Yourquestions