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Cash interest explained |
You will receive interest on balances in your platform cash account at the prevailing rate.
Embark Investment Services Limited acts as the custodian for investments on the Willis Owen platform and is one of our strategic partners that provides our Willis Owen ISA, GIA, Junior ISA and SIPP.
Embark places cash with a number of banking partners for safekeeping and to provide the potential for you to earn interest on money in your platform cash account. By managing cash in this way, it aims to provide better protection and a higher overall level of interest than if all funds were placed with a single bank.
The rates of interest paid by banks will vary. Embark retains a portion of the interest earned to cover its costs in managing platform cash.
Current Interest Rate
The table below shows the current customer interest rate payable on cash balances along with the amount of interest retained by Embark. The customer interest rate shown is that after accounting for interest retained by Embark:
| Date From | Customer Interest Rate | Interest retained by Embark |
|---|---|---|
| 25th November 2024 | 2.3% | 1.75% - 2.00% |
Embark can change the rate of interest at any time and it reviews the position at least quarterly. Interest is calculated and accrued daily and is credited to your account on the first of each month. If you transfer out, accrued interest is applied at the point of transfer. We will inform you if and when the interest rate changes as soon as is practicable.
Interest retained
The table below shows the yearly equivalent rates of interest Embark expects to pay based on a range of possible yearly interest rates it may earn.
| Interest Embark expects to earn | Customer Interest Rate | Interest retained by Embark |
|---|---|---|
| 0-1% | 0 – 0.46% | 0 – 0.54% |
| 1-2% | 0.46% – 0.94% | 0.54% – 1.06% |
| 2-3% | 0.94% – 1.46% | 1.06% – 1.54% |
| 3-4% | 1.46% – 2.02% | 1.54% – 1.98% |
| 4-5% | 2.02% – 2.61% | 1.98% – 2.39% |
| 5%+ | 2.61%+ | 2.39%+ |
Historic Interest Rates
To see details of historic customer interest rates, along with the amount of interest retained by Embark, click here.
Equity Styles Explained |
Market capitalisation is an indication of the size of the companies being invested in. It is calculated by multiplying the number of shares issued by the company by the current share price. Market capitalisation is divided into ‘large’, ‘medium’ or ‘small’ according to the below:
Large – Companies that have a market capitalisation greater than $10 billion.
Medium – Companies that have a market capitalisation between $2 billion and $10 billion.
Small – Companies that have a market capitalisation below $2 billion.
Companies can be categorised as ‘value’, ‘blend’ or ‘growth’ as defined below:
Value – Companies that are considered to be trading at a share price below what their fundamentals would suggest.
Blend – Companies that do not exhibit solely value or growth characteristics.
Growth – Typically well-established companies which are considered to have above average prospects for long-term growth.
Equity Regions Explained |
Equity region indicates in which countries the underlying shares within your portfolio are listed.
USA – Companies listed on a stock market in the USA.Canada – Companies listed on a stock market in Canada.
Latin America – Companies listed on stock markets in the Caribbean, Central America and South America, such as Mexico, Brazil and Argentina.
United Kingdom – Companies listed on a stock market in the United Kingdom, Guernsey, Isle of Man and Jersey.
Eurozone – Companies listed on stock markets in countries which have the Euro as their official currency, such as France, Germany and Spain.
Europe ex Eurozone – Companies listed on stock markets in western European countries which do not have the Euro as their official currency, such as Denmark, Sweden and Switzerland.
Europe Emerging – Companies listed on stock markets in European emerging markets, such as Poland, Russia and Turkey.
Africa – Companies listed on stock markets in African countries, such as Egypt, Nigeria and South Africa.
Middle East – Companies listed on stock markets in Middle Eastern countries, such as Israel, Qatar and Saudi Arabia.
Japan – Companies listed on a stock market in Japan.
Australasia – Companies listed on stock markets in Australia and New Zealand.
Asia Developed – Companies listed on stock markets in developed Asian countries, such as Hong Kong, Singapore and Taiwan.
Asia Emerging – Companies listed on stock markets in emerging Asian countries, such as China, India and Thailand.
Equity Sectors Explained |
Cyclical – Companies which operate in industries that are considered to be significantly affected by economic shifts. When the economy is prosperous, these industries tend to expand and when the economy is in a downturn they tend to shrink.
Basic Materials - Companies that manufacture chemicals, building materials and paper products. This sector also includes companies engaged in commodities exploration and processing.
Consumer Cyclical - This sector includes retail stores, auto and auto-parts manufacturers, restaurants, lodging facilities, specialty retail and travel companies.
Financial Services - Companies that provide financial services include banks, savings and loans, asset management companies, credit services, investment brokerage firms and insurance companies.
Real Estate - This sector includes companies that develop, acquire, manage and operate real estate properties.
Sensitive – Companies that operate in industries that ebb and flow with the overall economy, but not severely. Sensitive industries fall between defensive and cyclical, as they are not immune to a poor economy, but they also may not be as severely affected as cyclicals.
Communication Services - Companies that provide communication services using fixed-line networks or those that provide wireless access and services. Also includes companies that provide advertising & marketing services, entertainment content and services, as well as interactive media and content provider over internet or through software.
Energy - Companies that produce or refine oil and gas, oilfield-services and equipment companies and pipeline operators. This sector also includes companies that mine thermal coal and Uranium.
Industrials - Companies that manufacture machinery, hand-held tools and industrial products. This sector also includes aerospace and defence firms as well as companies engaged in transportation services.
Technology - Companies engaged in the design, development and support of computer operating systems and applications. This sector also includes companies that make computer equipment, data storage products, networking products, semiconductors and components.
Defensive – Companies which operate in industries that are relatively immune from economic shifts. These industries provide services that consumers require in both good and bad times.
Consumer Defensive – Companies that manufacture food, beverages, household and personal products, packaging, or tobacco. Also includes companies that provide services such as education and training services.
Healthcare – This sector includes biotechnology, pharmaceuticals, research services, home healthcare, hospitals, long-term-care facilities and medical equipment and supplies. Also includes pharmaceutical retailers and companies which provide health information services.
Utilities - Electric, gas and water utilities.
Product Involvement Explained |
Product Involvement metrics measure the percentage of a portfolio's assets exposed to a range of business areas and activities. For example, if a fund's involvement in Animal Testing is 20%, that means 20% of the fund's assets are invested in companies involved in Animal Testing.
Exposure percentages are calculated by summing the weights of a portfolio’s holdings in the companies involved in each area. In most cases a company is considered ‘involved’ in a certain area if it's revenue from that area exceeds a certain minimum threshold. In other areas, for example animal testing, abortion, contraceptives and human embryonic stem cell research, there is no revenue threshold such that if the company has any involvement at all in these areas, it will be considered involved. If a company is considered involved in an area, the entire weight of that company in a portfolio is counted when determining the overall percentages shown.
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ESG Pillars Explained |
Morningstar's ESG Pillar Scores help investors understand how a fund is performing in three key areas: Environmental (E), Social (S), and Governance (G). These scores break down the overall sustainability risk of a portfolio into these specific categories.
Each score reflects how much environmental, social, and governance factors contribute to the overall risk of companies in the fund. The scores are averaged based on the size of each company in the portfolio. Lower scores mean lower risk.
To receive these scores, at least 67% of the fund’s assets must be rated for their ESG risk. This provides investors with a clearer view of a fund’s exposure to sustainability risks in different areas.
Asset Allocation Explained |
Equity – Often referred to as shares. Shares are units of ownership in a company which entitle the holder to certain rights for example to exercise voting rights or to participate in the company’s profits.
Fixed Income – Often referred to as fixed interest or bonds. When you invest in bonds, you are typically lending money to a company or a government in return for a defined series of interest payments and the promise that a defined value (called the ‘face’ or ‘par’ value) will be returned at a certain point in time
Property – Investments in property include residential, offices, warehouses and shopping centres.
Cash – Money held in cash or cash-like instruments, often to ensure there are sufficient liquid assets within a portfolio.
Other – Contains other investments such as commodities, preferred stock and derivatives.
How do we work it out? |
The figures shown in our planner are for illustrative purposes only and are designed only as a guide to help inform your retirement planning. We’ve made a number of assumptions which may or may not be appropriate depending on your circumstances. If you need a more accurate, personalised idea of your income in retirement and help with your options you should seek regulated financial advice. You can also get free guidance and information from the free and impartial Money and Pensions Service.
Assumed growth in the value of your defined contribution pot(s)
The figures shown in our planner assume your defined contribution pension pot(s) grow at the following rates:
|
Investment Growth Selected |
Assumed annual investment growth rate |
|---|---|
| Low | % |
| Medium | % |
| High | % |
Assumed charges
For your defined contribution pension pots, we assume annual charges apply at the rate of 0.70% during the pre-retirement stage (reducing for larger pots) and 0.75% during retirement. The actual level of charges you pay may be higher or lower than those assumed.
Target income
The default figure shown for what income you might need is based on replacement rate benchmarks suggested by the Pensions Commission and is illustrative only. What you need in retirement will depend on your outgoings and your lifestyle and you can change the target income within the planner.
Tax
All figures are shown before tax and you should be aware that tax will reduce the amount you may get back. The retirement planner does not take into account any restrictions on the amount of tax-free cash which may be paid on or after 6th April 2024.
Annuity income
The annual income figures for the annuity scenario are calculated assuming you use the pension pot (either your whole pot or the amount that remains after taking out 25% as a tax-free cash lump sum) to buy an income for your life - a ‘lifetime annuity’. The projected level of should be viewed as illustrative only. The annuity is assumed to increase each year in line with inflation at 2% for the duration of your life only.
Effects of inflation
All figures shown in our planner are in today's terms. Over time, inflation (the increase in the prices of goods and services), reduces the buying power of your money. We therefore adjust projected figures to account for inflation so that what you see is the buying power of your money in today’s term. We assume inflation of % per year. Any defined benefit pensions and the state pension are assumed to remain level in real terms.
Life expectancy
Your estimated life expectancy is based on data provided by the Office for National Statistics. Clearly nobody can predict when you might die but this should provide a helpful indicator based on broader population data. You need to think carefully about your likely life expectancy and be prudent so as to avoid running out of money too early.
Age at which we estimate your drawdown pot could run out
This is an estimate of the age at which your drawdown pot could run out based on the withdrawals required to meet the chosen target income.
Assumed state pension age
We've assumed your state pension (where you've chosen to include it) will become payable from the age shown. This is based on our understanding of the current, confirmed schedule of increases to the state pension age. If the date at which you become entitled to the state pension is not aligned to your birthday, we've assumed it starts to be paid from your next birthday. For this planner, we've assumed you're entitled to the full flat rate state pension. What you will actually receive is based on your national insurance record and it could be different from the amount assumed. You can get a personalised forecast at www.gov.uk/check-state-pension.
Ongoing contributions
Where you or your employer are making ongoing regular contributions, for the purposes of this planner, we've assumed they remain at the current level. In reality, contributions may increase over time, particularly if they're linked to your salary so it's important to regularly review your position.
Assumed tax-free cash
For the purposes of this planner, you can choose to assume that you take either no tax-free cash from your defined contribution pension pots at retirement, or the maximum allowable 25%. We've done this to keep things simple although in reality you will be able to choose any amount up to the maximum allowable. Your entitlement to tax-free cash may, in some cases be restricted, particularly if your pension savings exceed the Lifetime Allowance.
How are contributions paid? |
From my bank account – Personal contributions are paid directly from your bank account. We’ll assume you’re entitled to basic rate income tax relief at source on the amount input so you should input the ‘net’ amount that leaves your account, excluding any tax relief.
From my salary before tax - This is sometimes called a 'net pay' arrangement. With these, your employer takes your contribution from your pay before it's taxed. You only pay tax on what's left. This means you get full tax relief, no matter what your tax rate is. Input the amount you see on your payslip as your contribution.
From my salary after tax - This is sometimes called a 'relief at source' arrangement. With these your employer takes your pension contribution after taking tax and national insurance from your pay. However much you earn, your pension provider then adds tax relief to your pot at the basic rate. The amount you see on your payslip is only your contribution, not the tax relief. Input the amount from your payslip and we’ll add the tax relief.
Under a salary sacrifice arrangement - With a salary sacrifice arrangement, you give up part of your monthly pay and in return, your employer makes additional pension contributions on your behalf. Your pay is lower so you pay less tax and national insurance. Your employer also saves on national insurance which in some cases, they pass on to you.
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Get started with your pension
Simply register for a SIPP and start investing today Invest now |
Use our simple retirement planning tool to get an idea of whether you're on track for the retirement you want.
Tell us about your existing pension arrangements so that we can take them into account in our calculations. Only include defined contribution pots here, you'll enter details of final salary schemes later.
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