Pre-Retirement – Nearly There


Tony & Amelia are 60 years old, and have no children. They enjoy a comfortable lifestyle, eating out a few days a week and going on three to four holidays a year.

Tony has a secure job and earns £51k p.a. before tax, making him a higher rate tax payer (40%). Amelia worked for the NHS for 30 years, and was a basic rate tax payer (20%), earning £28k p.a.

They save £500 p.m. which is added to their online saver account. The current balance is £65k which includes Amelia’s NHS pension tax free lump sum of £35k.

key client considerations2

Tony plans to retire at his State Pension Age, which is 66. Amelia has just retired and receives £10,500 p.a. from her NHS pension. When Tony retires, they want to go on a dream cruise to Australia, which they anticipate will cost c£15k. They intend to use their savings to fund the trip.

Tony has three old pension plans, none of which are receiving contributions.

Tony knows very little about his pension plans, as he puts all the paperwork in a drawer at home. Tony thinks that altogether they are worth around £150k.

Tony wants to know his pension options as he approaches retirement.


We reviewed Tony and Amelia’s circumstances, income & expenditure. This helped us build an understanding of the income they would need in retirement and we agreed a joint retirement income target of £32,000 p.a. at age 66.

We agreed both Tony and Amelia will be entitled to the full State Pension of £8,297 p.a. each.

After reviewing Tony’s pensions, we concluded the monies were mainly invested in shares and represented a high-risk strategy. We also discovered the charges Tony was paying every year were above average and the plans didn’t offer the new pension freedoms Tony had read about.

We agreed that Tony should consolidate his three pensions into one, reducing charges, providing him with a centralised investment strategy and a plan that offers flexible drawdown.

We concluded a Balanced risk profile reflected Tony’s needs and circumstances as he is just six years away from retirement. We also recommended Tony should redirect £300 p.m. of regular savings into his employer pension to benefit from £200 tax relief.


As a result of our work together Tony has saved £2,400 p.a. in tax, increased his pension pot at retirement and now understands what income he is likely to receive and the options he has. Both Tony and Amelia are more comfortable in the knowledge they have an investment strategy appropriate to their retirement plans.

Using our cashflow modelling software we showed Tony and Amelia they would meet their retirement income target and have the income flexibility they desire.

Tony also has the freedom to take tax free cash lump sums (up to 25% of the fund value) and pass any monies left onto Amelia on his death.

We agreed to meet for a financial planning review every year to ensure they remain on track to meet their objectives.

Both Tony and Amelia are now much more confident about their financial future. We gave them peace of mind and the ability to pick up the phone should any financial questions arise.