Are you taking too much money from your pension?

Why did Kathy come to us for advice?

Kathy had already retired and was utilising the Pension Freedom rules to draw money from her pension, which was worth around £200,000. She also had an additional £75,000 in investments.

She had previously taken advice from an adviser linked to an accountancy practice. But, his advice had been poor and she was taking income from her pension that she didn’t need. This meant she was paying too much tax and moving money into savings accounts where the interest rate wasn’t keeping up with inflation.

How did we help Kathy?

The first thing we did was help Kathy understand the pensions she had and the mistakes she was making.

After that conversation, Kathy soon understood that taking more money from her pension than she needed made no sense. And, that any money she didn’t take would still be available in years to come if she needed it.

We also took the opportunity to review Kathy’s pensions and investments. We concluded that the amount she was being paid was too high and the performance disappointing. Furthermore, they were not invested in line with her attitude to risk; which could have led to serious issues if the problem was not addressed. 

We therefore changed the assets Kathy held, to align them with the level of risk she was prepared to take. To save Kathy from incurring additional, unnecessary cost, we were able to do this with her existing pension provider.

How is Kathy now?

Our work means that Kathy is much clearer on what’s happening with her pension and is only taking out the money she needs; reducing her tax bill and ensuring that her pension will be able to support her for the rest of her life.

Kathy also knows that, if she needs to, she can take lump sums from her pension in the future to cover unexpected expenses or, a large holiday she has been planning. 

She also appreciates our regular reviews, something she wasn’t getting from the previous adviser.

How can we help you?

Taking the right amount of money from your pension is a balancing act; too little and retirement will be tough, too much, and you might run out of money before you retire.

Using sophisticated financial forecasting software, we can help you take the right amount from your pension so you can enjoy today, secure in the knowledge you are not compromising your future.