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Planning for Retirement – For a better tomorrow, today!

The Situation

At 50 years of age and married to Sarah, Richard was enjoying a successful career as a senior manager in a large outsourcing firm. He earned a generous salary with the potential to earn significant bonuses each year equal to his salary in addition to both short and long term share incentive plans. Over the years Richard had used these benefits towards repaying the mortgage on the family home, and had achieved the fortunate position of finally being mortgage free! In addition, Richard was also a member of the company’s final salary pension and death in service scheme.

Sarah had also enjoyed a prosperous career in the aviation industry, but after many years she decided to refocus her attentions to being a full-time mother and homemaker to their two children – Abigail 14 & Harry 12, particularly important as Richard’s increasing responsibilities at work meant that he was travelling to London 3 days per week.

Although enjoying a healthy and successful family life and being financially aware, Richard and Sarah were mindful of the need to plan for a comfortable retirement, which they expected to be in 10 years time.

Our Approach

Having taken the time to listen and understand Richard & Sarah’s current circumstances and appreciate their future objectives, our first priority was to ensure that all of their hard work would not be undone in the event of unforeseen circumstances:

• if Richard was unable to work due to accident, illness or injury

• if Sarah were to die prematurely or suffer a critical illness

To provide financial security against these lifetime risks, we put in place an Income Protection policy for Richard, and a Life and Critical Illness policy for Sarah.

We then focussed on helping the couple plan for the retirement lifestyle they were hoping to turn from a dream into reality within the next 10 years.

Richard’s salary and length of service meant that his final salary pension exceeded the lifetime allowance limit (the maximum value of pension benefits allowable under current pensions legislation). To make best use of this advantageous position we arranged for him to have individual protection put in place to provide him with a protected, personal lifetime allowance of £1.5 million.

To further complement Richard’s guaranteed pension income from his final salary scheme, we developed a bespoke investment strategy to enable him to invest future employment bonuses and share options with decreasing reliance on his employer for his family’s future financial security.

The Results

Our Lifestyle Financial Planning advice included identifying appropriate opportunities to invest in tax efficient investments such as Venture Capital Trusts (VCT’s), enabling them to also plan a financial head start for their children Abigail and Harry, funding them through university and providing a nest egg for their first homes. In addition, by using cash-flow planning we were able to demonstrate to Richard & Sarah that he could retire 2 years earlier than expected and still enjoy the lifestyle they desired in retirement.

Plan your tomorrow, today!

At Cowens Financial Services we recognise that for many people, retirement may seem a far-off prospect. We believe the sooner you start planning for “life’s longest holiday” the better placed you will be to enjoy it to the full – perhaps a lot sooner than you might imagine!

If you would like to find out more about our retirement planning service, please get in touch and take the first step to making your golden years dreams a reality.