We were approached by the 62 year old friend of one of our long standing clients. He asked for our help in sorting out his Pension – in particular the mass of paperwork he had recently received from his Pension providers. He had contacted them by telephone stating he had now retired from his business & would like to draw his pension. We arranged to meet at his home with he & his wife to discuss their requirements.
Client Concerns & Immediate Issues
- Client had retired & wished to generate an income
- Had a number of private pension funds & non pension investments such as ISAs
- Various ‘retirement packs’ had been sent to him by his current pension providers & he was overwhelmed by the huge number of options available
- Nervous of relying solely on future investment returns for his income
Our Initial Recommendations & Actions
- Reviewed the information he had been sent & clarified his options
- Recommended purchasing an Annuity with his pension funds taking into account his individual circumstances
- Carried out a comprehensive review of his non pension investments
- Established an investment portfolio in accordance with his appetite for risk & created a ‘tax free’ income stream
Results so far
- Improved income - a smoker & like many of his age Mr Client has minor health issues therefore it was possible to obtain an Annuity income 20% greater than that available from his existing pension providers
- Security & peace of mind that the annuity income was not subject to future investment returns
- Flexibility – a tax efficient income stream from non pension investments which can be amended to suit any change of circumstances
Please Note: This document is provided as a working example and for information purposes only this should not be construed as financial or investment advice.