Taking retirement planning seriously

Why did John come to us for advice?

John is a self-employed engineer.

He works abroad for much of the year and being a family man, he is keen to retire early so he’ll be able to spend time with his wife and grandchildren.

John had always looked to his accountant for advice, but pensions, and retirement planning in general, were never discussed. That meant the amount John was putting away for his future was woefully inadequate; if things continued, there’s no way he would have been able to afford to retire at all, let alone stop work early!

To put it bluntly, no one had challenged John about the amount he was paying in to his pension. Consequently, he was on track for a very disappointing retirement.

To make matters worse, his business was very successful, making large profits each year, which attracted sizeable tax bills. Pension contributions would therefore have killed two birds with one stone; reducing his tax bill while creating a more comfortable retirement.

How did we help John?

John needed a bit of ‘tough love’ which we were happy to provide. We showed him how small his income in retirement was likely to be and that he needed to start taking planning more seriously.

John took a lot of persuasion, but we were right.

We reviewed his existing pensions, and found they were expensive and performing poorly. We also projected what they would be worth in retirement. It came as no surprise that if John didn’t take some drastic action his retirement would be far from financially secure.

We then projected what John needed to pay into his pension to provide the income he wanted in retirement.

Our work, including a recommendation to move his pensions to an alternative provider, meant John felt he understood more about his pensions. He therefore had greater confidence that paying higher contributions was the right thing to do. 

How is John now?

Simply put, on track for a happier and more comfortable retirement.

Our advice means he is now putting away a realistic amount each month towards his retirement, which has also helped to reduce his tax bill.

John has built up a health pension pot in a relatively short period of time, if he continues at this rate, he will be able to retire significantly earlier than he ever thought possible.

How can we help you?

Most of us want to retire at some point. Equally, most of us don’t want to rely on the State Pension when we get older.

If that describes you, then you need to start taking retirement planning seriously.

We help clients plan their retirement by working backwards. Firstly, looking at the income they will need in retirement, then what their existing pensions will provide and finally making a recommendation to bridge the gap.

If you would like to talk to us about your retirement planning, we are here, waiting, and ready to help.