Peter is in his early 60’s, divorced with one daughter in her 30’s. He is a contract worker and has his own Limited company. Peter was introduced to us through his accountant.
Cash & Investments: £20,000
Pension funds: £120,000
Other Pensions: Peter does not fully understand how the various pensions work or how he can use utilise them in retirement.
Peter wanted to fully understand what his retirement plans and schemes mean, to work out if he could retire earlier than age 65 if he chose to.
- Peter was concerned he wasn't making the most of any tax advantages as a Limited company.
- We also needed to find Peter's best way to be able to exit the business in the next few years.
Actions we took
We discussed his goals and objectives over the next few years and into retirement, to establish what he requires to have the lifestyle he wants.
We created a personal Financial Plan which showed him how his finances are now and how his income stream would be into retirement.
We restructured the level of income and dividends he was drawing from his business.
We carried out analysis on all his plans and were able to consolidate them into one scheme with a suitable investment strategy for his needs.
We also placed that new pension fund in trust.
This resulted in:
- Peter being reassured that he can live the lifestyle he wants with his current plans. His retirement provisions are now simplified and in one plan which he understands. The investment structure is more suited to his life goals and risk level.
- By restructuring his drawings from his business, he has reduced his tax liability and will now be able fund more towards his retirement to provide additional financial security later.
- By placing the new pension in trust it has mitigated his Inheritance Tax liability and ensures his daughter will receive funds quickly on his death.
- We now continue to monitor his Financial Plan and are working towards him being able to retire in comfort in the next few years, ahead of target.
If you would like to get a clear understanding of where you are now and how to achieve your plans then contact Panthera on 023 9226 8969.
Names have been changed.
A pension is a long term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation. The tax treatment is depenent on individual circumstance and may be subject to change in the future. Tax Planning is not regulated by the Financial Conduct Authority.