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Living for Now While Securing Your Future

SCENARIO

Elaine age 60 is married with two financially independent children. She has decided to retire from her main employment in two months and move into a part-time job that will provide enough income to meet her needs for the next five years, fully retiring after that time. Elaine has a pension scheme from her employer worth £98,000 and a personal pension of £206,000. She does not have any other savings or investments to help fund the purchase and has a low to medium attitude to risk and a low capacity for loss. 

CLIENT OBJECTIVES 

Elaine wants to secure her future income and provide an inheritance for her children. She would like to access her tax-free lump sum to extend her house. 

POTENTIAL SOLUTION

Elaine could be advised to consolidate both pensions into a plan that is often referred to as a so called Third Way Pension that contains a guaranteed minimum income option. Elaine can then take her 25% tax-free lump sum of £76,000 immediately, leaving the value of her investment at £228,000. 

This is an example and is for information only and should not be deemed as advice. We recommend that you seek independent financial advice prior to taking any course of action.
 
Accessing pension benefits early may impact on levels of future retirement income and is not suitable for everyone. You should seek advice to understand your options at retirement.
 
Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.
 
The value of your investment can go down as well as up and you may not get back the full amount invested.

If you have a question or just need to talk please get in contact with one of our experienced advisors.
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We are entered on the Financial Conduct Authority Register No 114793 at https://register.fca.org.uk  The Financial Conduct Authority does not regulate taxation and trust advice and some aspects of employee benefits.

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