Case Studies

At Retirement Advice

William, now 68, had accrued a substantial pension fund and used his pension plans as part of his tax planning. He came to FOCUS as he now wanted advice on how to access to his pension fund.

The Need
William had no immediate need for an income as he would continue to receive a salary from employment, although this situation was likely to change in the future. William’s main concern was that his fund would disappear should anything happen to him and he was also keen to draw his Pension Commencement Lump Sum (tax free cash).

The Detail
I met with William to explain the various ways in which it is possible to access his retirement fund, and more specifically, the solutions now available that would allow him to take the tax free cash lump sum required, but without having to receive an income.

Taking into account  William’s attitude to investment risk, his current state of health (which was good), and his concerns over his dependants being able to benefit from his retirement fund in the event of his death, my recommendation was for William to establish a Drawdown plan. This would allow him to receive his tax free cash sum without any requirement for an income to be taken. More importantly, this solution allowed William to keep control over his pension fund and how it is invested. In the event of his death whilst the funds are still invested, there is also some flexibility for his dependants in how the remaining fund can be used.

This gave William the reassurance he was looking for.

The Outcome
By choosing to become an Investment Management client of FOCUS, William was re-assured that, in addition to the annual review meetings we will have, he has access to the team at FOCUS throughout the year to answer any questions that might arise and will be kept up to date with any relevant market developments.