Perhaps the biggest and single most important decision that members will make is at the point of retirement.  However, retirement planning starts on the day that an employee becomes eligible to join their employer’s DC scheme.  

There has been much press comment about the effect of the financial crisis on emerging benefits from DC pension arrangements. However, such difficulties should not arise if investment strategies are appropriately structured.   

Xafinity works with clients to ensure members understand the trade off of investment risk and reward, and the importance of timing of contributions throughout their membership.  We ensure lifestyle strategies’ risk ratings are appropriately calibrated, investment structures diversified and glide paths regularly reviewed to mitigate risk.  

When it comes to retirement, Xafinity works with sponsors, trustees and governance committees to assist members to select the most appropriate form of benefits for them personally, be that tax-free cash, an annuity pension for life or income drawdown.  

If an annuity is selected, we assist members to understand the relative merits and costs of incorporating a dependant’s pension, 5-year guarantee or protection from inflation. We also ensure that their relative health is taken into account as this can have a marked impact on the value of emerging benefits. Finally, we assist members to achieve the most competitive rates available.

It is particularly important that members are supported in this aspect of retirement planning, as the difference in retirement income provided by selecting the most appropriate type of annuity for the individual can be, at times, as much as 100%.