A change in lifestyle

A change in lifestyle

Janet had been made redundant from a senior position at aged 56. She is married to Chris who is 5 years younger, who is a self-employed furniture maker.

She had received a redundancy package and wished to retire from full time employment. She had also accepted her dream role as a part time fundraiser for her local hospice providing annual earnings of £10,000.

Janet needed help working out her retirement income. She had 3 pension arrangements, a small defined benefits pension paying £5,000 p.a. at aged 60, her employer’s money purchase scheme valued at £850,000 and a personal pension plan of £350,000.

Janet had life time allowance protection for these plans. Her husband enjoyed his job and would probably never retire, earning around £20,000 p.a. They had some savings and their only debt was a mortgage of £120,000.

We established that they required a total nett income of £60,000 p.a. inflation protected. We agreed that the mortgage would be repaid out of a combination of savings and tax free cash from the pension.

Janet’s employers pension scheme was very low cost and had a good range of risk rated managed funds and the flexibility for income drawdown. We therefore recommended that she transferred her personal pension plan into the workplace scheme and that Janet topped up their joint earnings of £30,000 from a combination of tax free cash and income from this pension plan.

We were able to demonstrate that this was sustainable and inflation linked.

At age 60 Janet would take her final salary pension scheme and at aged 67 her full state pension. Chris’s pension would be available to draw on from age 55. We were able to facilitate Janet’s desired change in lifestyle.

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