The financial details

Home – £800,000
Mortgage – £60,000
Investments – £50,000
Pension fund – £650,000
Pension income – £20,000

The personal details

  • Married couple in early retirement
  • Worried about being able to maintain their standard of living
  • Wanted to avoid becoming high rate tax payers
  • Husband worried about his wife’s security in the event of his death

Our solution

  • We restructured our client’s pension plan into a more flexible, progressive arrangement with potentially better investment returns
  • We selected a specialist external investment managers to provide expert fund management and research on an ongoing basis
  • We released tax-free capital to pay off all debts including the mortgage
  • We established a sustainable level of income using the client’s tax allowances.

The outcome

  • Our clients’ are now mortgage and debt free saving on interest payments each month
  • Income was increased by £1,400 per month
  • Maximum flexibility was retained on future access to further income and capital
  • The structure of the plan ensures the wife has full access to the income and capital in the event of her husband’s death
  • The risk and return characteristics of our clients’ investment portfolio has been improved.