Brian had been considering retirement for a number of years but his main concern was whether he and his wife would have enough income in retirement, due to his wife being a number of years younger.
By running an analysis of their pensions, Coupled with their State Pensions, we established that they had a number of final salary pensions, which when they were due, would provide them with sufficient guaranteed income to meet their income needs.
Therefore we were looking to their various money purchase pensions to cover the shortfall between now and the due dates. We ran a number of cashflows with different income requirements and different retirement ages.
Following our conversations, we recommended consolidating his various money purchase pensions. This allowed him to draw a combination of tax-free cash and “taxable” income to meet his income requirements, without paying tax.
Brian is happily retired and planning some travelling!