Illustrations

Where a client only has a single sub account and it is crystallised, the illustrations for it will be broadly the same as the illustrations you previously generated.

Where the client has multiple crystallised sub accounts, you will notice that they will now be presented together within the same illustration. Each crystallised sub account will be detailed separately.

For more details about the new underlying structure of the Collective Retirement Account, please see our helpful guide.

You may notice a handful of changes.

• Multiple sub accounts will now be presented together within the same illustration. Each sub account will be detailed separately.
• Where there is more than one crystallised sub account, these will be presented alongside the uncrystallised sub account.
• The reduction in yield on the crystallised sub account(s) may be higher than you were expecting. This is because we will deduct the Product Charge and adviser ongoing servicing fee for the uncrystallised sub account from the largest valued crystallised sub account held in the account. This means the combined effect of our charges and any asset manager charges reduces the crystallised sub account to give a reduction in yield figure that may look a lot higher than expected. It could also result in the reduction in yield of the uncrystallised sub account being lower than expected.
• We have ordered the deduction of charges in this way to benefit your clients. Deducting charges from the crystallised sub account first helps from a tax planning perspective. In the uncrystallised sub account, the assets are able to grow without the strain of charges which increases the rate of accumulation in this sub account for the purposes of additional tax free cash. In the crystallised sub account, the deduction of fees lowers the growth rate of the assets to mitigate against the second Lifetime Allowance test at age 75.

For more details about the new underlying structure of the Collective Retirement Account, please see our helpful guide.