With only five years until he hoped to retire, Tom and his wife Alison approached us, seeking our help on how to balance the following requirements:

• Tom was keen to retire from his financial director position at age 60 but was concerned at what his existing pensions would provide. When could he realistically expect to retire, and would they have sufficient income in retirement?
• They were concerned that their investments and savings were not being managed to best effect.
• With their two children both at university, it was proving an expensive time. How could they manage this extra expenditure with their own hopes for retirement?
• They wanted to reduce their tax liabilities, leaving more income for themselves during their lifetimes, but also ensuring that their children would benefit as much as possible on their eventual death.
• With Tom being the main earner, they were worried that if he were to become unwell, the rest of the family would not be financially secure.

We have initiated the following:

• Helped reduce their inheritance tax liabilities, by liaising with a solicitor to implement wills and trust, as well as lasting power of attorney documents

• Carried out a detailed risk assessment and asset allocation to recommend appropriate amendments to existing pensions in line with risk attitude and specific future requirements
• Proposed a detailed and cohesive plan to reduce Tom’s current high level of pension contributions and take retirement benefits instead, utilising flexible retirement options to provide a tax-efficient income in retirement
• Conducted an assessment of their existing protection provision, confirming that sufficient cover is already in place

This has helped Tom and Alison to:

• Feel reassured that they will have sufficient income for Tom to retire as planned at the age of 60
• Provide for the university fees and living expenses of their two children – they are happy that their children will not leave university laden with debt, giving them a head start in life
• Be confident that they remain financially secure in the event of Tom’s ill health
• Reduce their tax liabilities, and so increase their net spendable income, during their lifetimes, whilst knowing that they have maximised their estate for their children in the future