Updated: Jul 13, 2020
Patricia and Bill were in thier mid 50s and close to retirement when they approached Atherton York for financial advice. They had both accumulated a number of small pension pots during their working lives and wanted to get the best retirement income to suit their needs.
They considered themselves to be asset rich but pension poor and were worried about how they could sustain their lifestyle during what they hoped would be a long retirement as well as provide cash gifts to their two children to help them get onto the housing ladder.
Two years prior to our meeting Bill had suffered a minor stroke from which he has made a good recovery. Patricia was in good health and comes from a family with a history of longevity.
The first meeting with this couple was without obligation but it was clear that significant value could be added by the independent advice we could offer. It was agreed that we would research better rates of retirement income for their various pension assets and see whether Bill’s previous medical condition could result in raised income levels.
Even with greater pension income it was clear that there would still be a large shortfall in their desired income. Therefore discussions also centered on using their accumulated savings and investments to generate a monthly income.
At the second meeting it was pleasing to report that 7.9% uplift in their pension income levels had been procured by Atherton York through negotiation with the various providers of impaired pension annuities. A shortfall still existed in their income demands and it was agreed that two thirds of their savings would be used for income generation purposes with the remaining one thirdinvested for capital growth purposes.
Since becoming clients, Patricia and Bill now have a better understanding of their income needs and their diversified portfolio of investment assets is now invested 50/50 for income and growth purposes. By regularly using their ISA allowances their investment income is now also entirely tax-free. We have also advised them on their estate planning options and they now make use of annual gifts to their children who have used these funds to establish themselves on the housing ladder. Atherton York also work alongside Patricia and Bill’s lawyer to establish a seamless approach to their professional services.
The contents of this case study is for information purposes and does not constitute individual advice.