The issues raised with us were as follows:

• He was unsure of what he was receiving tax-free
• When he was presented with the Approved Retirement Fund (ARF) and annuity options, he was unsure what was most suitable for himself and his family
• Following meetings with the financial planning department of the pension scheme administrators, he felt he was being sold a specific option without proper advice
• This was going to be his last big financial decision, so he wanted to get it right.

What we did

Through our advice process, we clearly explained tax-free lump sums, the amounts, what an ARF is, what an annuity is, and how they differ.

We then created a financial roadmap and income assessment, showing the financial effects of opting for different tax-free lump sums and subsequently investing in an ARF or purchasing an annuity.

How we helped

As a result of our advice, our client now has the following:

• Maximised his tax-free retirement lump sum
• Made the retirement option decision that is best suited to him and his family’s long-term future
• Peace of mind that he won’t run out of money and can spend freely on the good things without worrying.

The issues raised with us were as follows:

• The client had a pension set up through the business but wasn’t receiving advice on it and wasn’t 100% sure of the benefits
• He didn’t know exactly where his family stood financially, what was going out versus what was coming in, or where they were going.

What we did

Following our initial discussions, we highlighted further significant issues:

• If he couldn’t work due to illness or injury, it created an issue for his family on cash flow
• He and his business partner had never thought to consider succession planning should one of them pass away early.

How we helped

After going through our process and making the necessary changes, our client now has the following:

• His income, which is his main asset, is protected, so in the event of an illness or injury, his family still has a regular income, allowing them to absorb the financial shock
• A succession plan with his business partner so that should either of them pass away, their surviving dependents will receive fair compensation for the share of the business
• A clear understanding of what his pension is, what it’s doing for him, why he has it, and the benefits
• A clear roadmap and strategy for his family’s finances.
• Maximised his tax efficiency.

The issues raised with us were as follows:

• They didn’t know where they stood financially or whether what they were doing was right or wrong
• They had been saving regularly in the credit union and were concerned about inflation and no returns on savings.

How we helped

After going through our process and implementing our strategies, they have the following:

• Created an emergency fund
• Protection for their most important asset, their income, now and in the future
• A clear strategy in place as to how their children’s college costs would be funded should their education go in that direction
• A clear saving strategy to generate growth over long-term inflation
• Maximised their tax efficiency
• A clear financial planning strategy specific to their family’s requirements
• Confidence and financial security.

The issues raised with us were as follows:

• They wanted to review their pension options
• They had never received any advice from their employer’s pension advisers.

What we did

Throughout our process, we recommended that instead of looking at the pension as a standalone investment, they use it as part of an overall financial planning strategy.

How we helped

As a result of our advice, our client now has the following:

• His pension is structured so he is the owner, and no future contact is required with his ex-employer
• His pensions are now supported by a low-cost investment strategy specific to his goals, risk tolerance and own objectives
• Both pensions are now supporting his overall long-term personal financial plan.