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Case Study Details
Name Pension Planning & Income Management Date 07 June 2016 Categories income  lifestyle  planning   Author Ethos

Pension Planning & Income Management

Our husband and wife client had past their 60th birthday and were looking to retire and enjoy a number of personal interests. They had several guaranteed occupational pensions and the husband had additional personal pensions accumulated over many years.

Their objective was to generate sufficient income for their retirement as the husband was not due to receive his state Pension until he reached age 65.

Their concern was the current record low level of annuity rates, which are a consequence of rising life expectancy and the Bank of England policy of Quantitative Easing. We fully reviewed all of their pension and investment plans and completed a risk profile exercise and were able to offer a number of options and to highlight advantages and potential problems of each option.

After much discussion, our clients proceeded by taking their guaranteed pensions, including a personal pension that enjoyed a high Guaranteed Annuity Rate, and then keeping the remaining personal pension funds in a pension investment plan that could generate income, thereby delaying the purchase of a pension annuity until annuity rates (hopefully) improve in time to come.