Selectapension has rolled out the TVC now. Just done my first one. TVC bit attached.
This client has 9 years to NRA. Earlier in the TVA the capital value of the fund required at NRA (i.e. In future terms) is:
Now, I know what's going on here. The capital value at NRA is in future terms and based on client specific market rates. If I discount that back by just inflation (RPI 2.5%) it's £238,000. The TVC is today's terms is £291,000.
Quite a difference. I know that TVC is generic assumptions with risk free return and no advice fees. It basically shows what the client would have to pay to buy out benefits today. I think it's designed to put people off transferring.
My question is, how are you presenting and explaining this to clients? Are you just showing the TVC or also the capital value at NRA discounted back as part of APTA?
Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern. Republican.