Keith and Claire were 55 and 57 years old, married with two grown up children:
- Combined Salaries: £80,000
- Existing Savings and Investments: Cash £50,000, Stocks and Shares ISA £150,000
- Two properties: £475,000 and £300,000
- Mortgages: £0
- Various pensions: Occupational (including Final Salary) and Personal Pensions.
Keith enjoys his work as a middle manager in a construction company, but he is keen to retire when he reaches 60.
The couple earn good salaries and enjoy a comfortable lifestyle which they wish to maintain post retirement.
They believe they are taking too much risk in their current investment portfolio and wish to de-risk it given their approaching retirement.
Their pension plans are disorganised. The couple are unclear whether they have sufficient in their combined pots to retire comfortably.
They seek peace of mind that the other will be financially secure in the unfortunate event that one of them were to die. They also want to ensure that they leave any inheritance to their children in the most tax efficient manner.
The Otter solution
We discussed with Keith and Claire their goals and aspirations regarding their future.
After collating all their financial information and carrying out a risk assessment, we helped Keith and Claire understand their situation better and explained all the options available to them.
Using sophisticated financial planning software, we developed a detailed cash flow analysis and financial plan, giving comfort that they will have sufficient resources to retire at the age of 60, whilst still maintaining their lifestyle.
We carried out a thorough pension review, identifying valuable hidden benefits in some and poor performance and need for diversification in others. We were also able to simplify arrangements significantly, consolidating many pension plans into one arrangement.
We helped restructure their investment portfolio, ensuring it was better diversified and took less risk overall.
The whole portfolio has been made as tax efficient as possible through thorough use of all available allowances.
Ultimately, we’ve given Keith and Clare peace of mind regarding all areas of their financial position. As we do with all Otter clients we will stay in regular contact, assessing their position and advising on strategy adjustments as necessary.
This is a real situation based on real clients of Otter Financial Services. We’ve changed names for data protection reasons, but if you’d like to speak to any of our clients, just let us know and we’ll put you in touch.