Arthur and Mary approached us for retirement advice. They’d accumulated a number of pensions and were thinking of selling their business but had a business loan that still had five years to run, and they wanted to pay this off early so that they could retire.

We checked that there were no guaranteed annuities on their pensions and no early surrender penalties, then consolidated them into one modern contract. This reduced their overall charges, allowed us a wider selection of funds to choose from, and provided the flexibility to take their tax-free cash without purchasing an annuity. They took this in order to pay off the business loan in full, and left the rest of the funds invested until they retired.

Arthur and Mary provided an indication of how much income they would need in retirement and with this we created a cashflow forecast which took into account the pension funds they had left and the likely sale price of their business. This demonstrated that if they achieved the price they thought the company was worth, they could actually retire earlier than planned and still generate the level of income they required.

 The purpose of this case study is to provide technical and generic guidance and should not be interpreted as a personal recommendation or advice.