Nucleus has enhanced its suite of technical product resources for financial advisers with the introduction of updated pension calculation tools.
These tools are designed to streamline pension calculations, saving advisers time and helping them stay informed about complex pension policies and legislative changes.
The newly developed tools will enable advisers to calculate a client’s annual allowance, including any available carry forward, and illustrate the benefits of salary sacrifice for pension contributions.
These calculators have been developed by Dunstan Thomas, a specialist fintech solutions provider within the Nucleus group.
The annual allowance calculator helps individuals determine how much they can contribute to their pension in the current tax year without exceeding the annual allowance and incurring a tax charge.
Advisers will need to input details of their client’s pension savings, including defined benefit accrual, covering at least the past three tax years.
The tool also factors in any unused allowance from previous years and any tapered annual allowance adjustments.
The salary sacrifice tool provides clients with a clearer picture of how their take-home pay would be affected if they choose to exchange part of their salary for pension contributions.
The calculator considers the implications for income tax and National Insurance (NI), and allows advisers to compare relief at source with net pay or salary sacrifice arrangements.
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Additional customisation options include adjusting the client’s personal allowance, specifying their tax residency within the UK, and determining whether employer NI savings will be passed on to the client and at what percentage.
Advisers can also compare alternative pension contribution arrangements.
Andrew Tully, technical services director at Nucleus, said: “Advisers’ time is precious, as is their clients’ time, so we want to help wherever possible.
“Within the Nucleus Group, we have deep pensions technical expertise. We aim to provide the products and services advisers need to create and manage a holistic financial plan for their clients, helping them achieve their investment goals and ultimately enjoy a more rewarding retirement.
“With all the complex changes around pensions in recent years, having the tools available to demonstrate what clients can save towards their retirement is more important than ever.”
The updated calculators are available to advisers via the Nucleus Illuminate Technical hub, which also offers a range of technical factsheets covering pensions, investments, tax and trusts.
Additionally, the hub provides tech talks on key industry topics and insights from the Nucleus technical team.
