B is higher than A even though it is post-tax – can £21,020 invested, with or without a remodelled employment package, produce something more valued than £4,000 per annum guaranteed for life?
Whether it is DC, DB or a mixture of both, the thought process is the same.
Alternative strategies that may be suitable could involve transfers to Qrops, vesting to drawdown and recycling income efficiently or perhaps less appropriately, leaving the excess for pension death benefits – assuming they expect to die before 75.
A close eye will need to be kept on the impending consultation on a new form of protection, individual protection 2014, as that will be a consideration in any advice.
One size does not fit all for a client’s LTA planning, but what all clients have in common is the need for sound financial advice.
Does it really all come down to the principle that tax is only bad if the net benefit is not deemed ‘worth it’?
