Case Study: Planning for retirement

The background

Mrs K, age 62, is considering retirement and is still working in order to save. Her goal is to retire fully by March 2019. However, if possible, she would like to retire sooner to enable her to have the time to spend with her grandchildren and enjoy more holidays.

The challenge

Mrs K’s affairs had become disorganised and hadn’t been reviewed for several years. She was worried that her money wouldn’t sustain her standard of living and would, over time, be eroded by inflation. She had invested into a plan which did not offer her flexibility to access her pension in the future.

The solution

Mrs K came to Banner Jones Wealth Management for a review of her existing pension plans to see whether her retirement goal was achievable. She also wanted the ability to access her pension funds flexibly and pay as little tax as possible, as and when required.

When we met Mrs K our initial meeting allowed us to learn more about her circumstances in more detail, including her goals, aims, ambitions and targets for the future. We also took the time to discuss how comfortable she was taking risks and what impact they may have on her plans.

The second stage to Mrs K’s goal was knowing whether the level of income that she wished to take would be sustainable. Our wealth management team in Chesterfield prepared in-depth cashflow forecasting for Mrs K in order to demonstrate whether her pension assets would meet her income requirements in retirement and how sustainable this level of income was. We also prepared in-depth cashflow forecasting to demonstrate the maximum sustainable income.

The benefit

Our proposed plan not only offers her the flexibility to access her pension funds in line with her goal and attitude to risk, but the charges for the platform and annual management charges incurred are also less. The proposals addressed all of Mrs K’s initial goals.

We were able to highlight that Mrs K would have enough income to be able to make the decision to retire before March 2019, earlier than she had originally planned. The proposed restructuring of her pensions was to provide a flexible income in a tax efficient manner.

In November 2018 Mrs K made the decision to retire. She is planning her additional holidays and looking forward to seeing the grandchildren and being involved as they grow up.

With ongoing review meetings at Banner Jones Wealth Management, we can ensure that Mrs K’s pension investments remain suitable, considering any future changes to her circumstances and legislation.