Suitability Assessment Questionnaire

Workplace Pensions Suitability Assessment Questionnaire

Pension Suitability Assessment Questionnaire

Please Select Your Financial Adviser

What investment knowledge or experience do your employees have? Please indicate in your opinion the approximate percentage of your employees that fall in each of the following categories:

No investment knowledge or experience They will rely entirely on advice and/or the scheme default options A little knowledge or investment experience They may be more confident about considering different investment options Have some investment knowledge and experience They have made personal investment decisions previously and understand the dynamics of investment risk and reward Highly knowledgeable and experienced They have managed their money and investments personally for a period of time and have the confidence to make their own decisionsTotal out of 100%

Broadly speaking, there are three different investment strategies used for default funds under workplace pension schemes. These are referred to as ‘Passive’, ‘Active’ and ‘Hybrid’ which we explain below. Investing in Passive, Active or a Hybrid approach doesn’t guarantee better investment returns or risk outcomes.

Passive investment funds track certain market indices, for example, the FTSE AllShare index (UK Equities) or the S&P 500 (US Equities). A ‘good’ passive fund will achieve performance very close to that of the indices it is designed to follow, and typically is provided at low cost, depending on the structure of the workplace pension scheme. Passive investments are also known as ‘Tracker’ funds and are managed through an IT system which buys and sells stocks and shares (equities) in an effort to mirror the performance of the indices it is following.

Actively managed investment funds are run by professional fund managers who aim to beat the performance of the investment markets, whether this is in a period when the values of investment markets are rising or when they are falling. Active fund managers believe markets are inefficient and it is therefore possible to profit from the stock market by identifying stocks and shares they believe will deliver better value and therefore outperform the benchmark index.

A hybrid approach is a blend of active and passive management.

Please select your preference for the investment style of your schemes default investment fund Active Passive Hybrid No Preference

3. There are options for the default investment funds under workplace pensions to automatically reduce the level of investment risk as members get older and move closer to their retirement.

This is designed to provide members with some protection against falls in the investment market in the months and years leading up to their selected retirement date. There are different methods that can be used for this de-risking process, including; – The higher risk assets in the fund are gradually sold and replaced by lower risk assets over a defined period in the lead up to the members selected retirement date (or the default retirement date, if the member has not selected an alternative) – The de-risking process can target specific outcomes at the members selected retirement date. There will be a default outcome that would apply to all members, but this can be changed to reflect an individual employees objectives at retirement. Examples of the outcomes that can be targeted at retirement include; The funds remain invested and are drawn down, as required The funds provide a tax-free lump sum and the balance purchases an annuity The funds are held entirely in cash These outcomes would look different at retirement and the investment path for moving from the default investment funds used in the growth phase to the target outcome would also be different

Please select your opinion on which of these styles of de-risking would be most appropriate to the majority of your pension scheme members Target ‘annuity’ Target a flexible outcome Full encashment No opinion

4. Pension providers are increasingly using the significant investment funds they manage to help influence positive change in environmental and socially responsible initiatives.

This is achieved through investing primarily in companies that prioritise environmental, social and governance (ESG) factors in their operations. These ESG funds are seeking to invest exclusively in companies that demonstrate responsible behaviours and ethics. These would include commitments to minimising environmental harm through their business operations, managing employees, suppliers, customers and the communities in which they work in a fair, caring and supportive manner and have a clear and transparent culture with focus on auditing, internal controls and shareholders rights. ESG however does not mean pure ethical/sustainable investing – Ethical investing tends to avoid certain industries (i.e tobacco, weapons, animal testing) whilst some ESG funds may choose to continue to invest in these areas.

Please select the importance you place on your workplace pension scheme offering employees the option to select ESG approved funds This is really important to us – we would like our default fund to have strong ESG credentials We would like employees to have the option to select an ESG rated/ethical fund but this does not need to be the default option The option to invest in ESG rated/ethical funds is not important to us We have no preference

5. In recent years, there have been changes in legislation that have extended the options that members of your workplace pension scheme have when they take their benefits at retirement.

In the past, there was little choice with members having to take part of the fund as cash with the balance being used to purchase an annuity. The member’s now have the choice to purchase an annuity, take all or part of the fund as cash or draw income and lump sums from the fund, when they want, rather than as set monthly amounts. Currently, not all workplace pension schemes provide the members with access to all these options within the scheme. This doesn’t mean they cannot take advantage of the flexibility these options provide at retirement but in some cases, it is necessary for the employees to transfer their funds to a different plan or provider to access these options which may need personal advice and therefore cost to the member

Please select the importance you place on your workplace pension scheme offering employees all the retirement income options available within the current scheme This is really important to us – we would expect our pension scheme members to be able to access all available retirement options within the scheme It is important that employees can access all options at retirement but as our pension is likely to be only part of their overall pension provision, we do not consider it is critical that all options are accessible within our scheme. However, we would like employees to be able to access all options without switching pension provider. Provided that our workplace pension meets the minimum legal and regulatory requirements, we are not concerned over the retirement income options available to members as this is a personal matter for them to consider We have no preference

6. Please select how important it is to you that your employees can access advice and guidance.

Wingate’s standard service proposition provides unlimited remote advice and guidance on all aspects of the workplace pension however you can purchase additional services from us as detailed below We are happy with the current service provided by Wingate. We would like to consider enhancing our pension proposition to improve employee engagement.

7. Comprehensive and rich online functionality

Please select how important it is to you that your employees have access to comprehensive and rich online functionality allowing them to fully engage with their pension It is really important to us for our employees to have visibility to just our workplace pension via an online service or a mobile phone app It is really important to us for our employees to have visibility on all their pensions in one place We do not know if this is important to our employees Your Full NameCompany NamePositionDateSignature

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