The 'At Retirement' Process
Initial Contact
Initial contact may be over the phone, or by correspondence. For an existing client the initial contact may be the time that you begin to have conversations about their options, as they approach retirement, which for existing clients may be some time before any benefits are taken.
The stage one objective is to engage the client and map our the process that you will go through. You may want to give the client homework to do! This may include:
- An overview of the options available
- Reflection on their values, and objectives in retirement
- The gathering of relevant information
Without over-powering the client with material and information we need to engage the client in the issues and ensure that there is an understanding that by following these processes you will be able to find better solutions.
|
Things to be discussed |
Things to be handed over
|
Administrative Tasks
|
|
|
|
- Client agreement
- IDD
- Money Laundering
- Bank of England check
- Letters of authority
- Fact find & Supplementary questionnaire
|
Having explained what you do and how it works, as well as doing the Basics on the administration, its now time to get on with the job in hand. Don’t forget to set some home work for the client too! Let’s make sure They really do understand the issues you are about to discuss.
Notes
The Process they will go through: This is the opportunity to explain to the client the process that they are going to go through and to manage their expectations so on timescales and the work involved. It is an opportunity for the adviser to explain the costs involved as well.
Admin, and compliance process: In addition to explaining the overall process that the client will go through be clear about the magnitude of administrative tasks involved, and the costs incurred in this
Process map: You may wish to create a simple diagram or flowchart of the process that you will be taking a client through. This ensures consistency, and also manages the expectations of the client
BR19: Completing form BR19 in hardcopy or online will tell the adviser and client exactly how much state benefit is payable in retirement. This is important for those who wish to target taxable income levels and decide upon income streams from flexible income products.
Core assumption handouts: In establishing the basis on which advice is being given, the adviser may find it helpful to hand over relevant material, such as an economic view, or summary inflation report. Evidence suggests that the more a client understands about the situation the broader their attitude to risk.
