Case studies

Client Case Study - Early Retirement

Background – Mr G and his wife approached us in January 2008 for some retirement advice. Mr G wanted to know if he would be able to retire in two years time at age 60. They had used a financial adviser previously but they did not understand the advice they were given and did not receive regular contact from them.

Mr G was working as a joiner and had a clear idea of what retirement income was required after repayment of their small mortgage.

Mr and Mrs G’s Assets

Home - £270,000 (after repayment of mortgage)

Various Savings and Investments - £150,000

Personal Pension - £135,000

Deferred British Rail Pension

Challenges

  1. Early Retirement – Mr G approached us with a clear idea of what income he would require in retirement and wanted to know how he would be able to achieve his goal of retiring at age 60.
  2. Varied investments and deposits – Mr G and his wife held various accounts and deposits which were poorly structured. This resulted in poor investment performance which was not properly managed.
  3. Mr G and his wife had a small mortgage on their property.
  4. Mr G felt he was too young to draw a retirement income from his pension.


What We did

  1. We reviewed the client’s circumstances and priorities and worked out exactly what their income requirements were and what their current holdings would generate now.
  2. We also looked forward to the years ahead and what impact the state pension would have on their retirement income.
  3. We consolidated their various savings and investments into one modern and flexible, tax efficient investment from which they could take a regular income. £50,000 was left in easy access deposit accounts for incidental and emergency purposes.
  4. We transferred Mr G’s pension to more flexible arrangement which allowed him to draw a tax free lump sum to repay their mortgage. Mr G did not require an income and the fund remains invested until such time as it is required.


The Results

  1. The work we undertook determined that Mr G and his wife were already capable of financial independence and subsequently Mr G was able to retire immediately.
  2. In addition to this, the new investment and pension strategy affords maximum flexibility to respond to any changes in Mr G and his wife’s circumstances.
  3. We simplified the management and reporting of the various deposits and investments, applying  a cohesive investment strategy which is actively managed within the clients attitude to risk.
  4. This has resulted in improved performance of their overall portfolio and reduced the level of investment risk that they are subject to.
  5. We have agreed a program of regular reviews with Mr G and his wife so that we can ensure that their strategy still matched circumstances and requirements.



Two years ago at the age of 58 and my wife 65, I was hoping to retire at 60.  We had various small investments in different companies, also some small pensions in my wife’s name.

Retirement and Investment Solutions (RIS) was recommended to us by friends and after a consultation with RIS we were informed that we could retire straight away.  RIS reinvested most of our assets, set up pensions and took all the worry away from investing our money. We retired knowing that our investments are being constantly monitored for now and the future, giving us peace of mind.”

Mr and Mrs G


The case study illustrated above is based on one of our clients and its aim is to give you an idea of the type of work and planning we undertake for our clients.

Changes in legislation and tax can impact on the advice that we give to our clients. This case study is not guaranteed to work in all circumstances and is intended to be a guide.

Please remember that the value of investments can fall as well as rise.

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Retirement and Investment Solutions
5 Lancer House, Hussar Court
Waterlooville
Hampshire, PO7 7SE

T: 01489 878300
F: 0870 0104883
E: advice@retirementis.co.uk