Financial Planning software suite FinCalc has added lifetime allowance (LTA) functionality to its cashflow modeller.
DB transfer specialist O&M Pension Solutions extended its product range with the launch of the new Financial Planning software suite in July.
The Colchester-based company said that cashflow modeller suite FinCalc marks a new era for the company as it strives to provide a wider range of tools and calculators to help advisers with Financial Planning.
FinCalc’s cashflow modeller includes all HMRC protection types, tax free cash protection, historical BCEs can be entered to calculate revalued crystallisations for primary and enhanced protection without tax-free cash protection, using uncrystallised or crystallised funds for withdrawals from DC funds, LTA charge recoup factor for DB schemes, “smart advisories” to point out potential issues for clients and highlight the impact of LTA on their retirement.
Gavin Shears, senior product consultant at FinCalc, said: “With a lifetime cashflow modeller, it is crucial that LTA is handled correctly and applied within a client’s current position to illustrate when an expected standard of living may have to be adjusted to cope with this potential tax charge of up to 55%.
“Having the functionality to look at ‘What if’ your client crystallised pensions in a different order or by a different withdrawal style or maybe they achieved a different investment growth? These are some of the most important questions advisers are facing today and FinCalc’s latest addition provides the tools to help answer these questions and clearly show clients the impact of LTA in their Financial Planning.
“Including LTA within a lifetime cashflow modeller will save so much time for advisers and follows on from the inclusion of full income tax calculations. The impact of any LTA tax charge is clearly detailed in the results output and is extremely powerful for advisers when helping clients move from pensions accumulation to decumulation.”