Finding a secure level of income during retirement

Many people in the process of planning their retirement look to independent financial advisers to help with pension’s advice when they hear of options of investment to increase their savings. This was the case for our Leeds team recently, who helped Eric find a secure level of income during his retirement.

Eric, who was still working at the time, came to our team after being recommended our services by a friend, with a request to take out money from his pension to buy a property, but found that if he did so whilst still in work he would face an unnecessary and high tax bill.

Initially, we offered a free 30 minute finance consultation with Eric, so we could discuss his situation, before planning in the next steps to take to help resolve it.

Our Leeds team of independent pension advisers then researched the forecast on the returns of the rental property he was looking to invest in, and taking into account the void periods as well as the maintenance costs of the property, we advised the best possible solution for Eric, to allow him to have a stress-free retirement.

We advised that he retain his benefits until he retired to avoid losing out on tax, and we then drew down on a guaranteed secure level of income to fund his retirement. The income we helped plan was higher than that of the property forecast, and what’s more, we even got Eric an uplift due to the situation with his health.

Eric said:

“The Heritage financial adviser team have been absolutely fantastic in helping me understand and get the most out of my pension. When you get to a certain point in life, you start planning for retirement, and I always thought that investing in property would be the best way for me to get absolute security after I finished work. But what I didn’t realise was the other options available to me, but thanks to Heritage I now fully understand what’s out there, and how I am best to approach them.”

Andrew Dodd, owning partner of Heritage Wealth Solutions, added:

“We see a lot of people like Eric who want to increase their pensions but don’t really know how to go about it. That’s why we conduct a thorough analysis on a variety of options open to them, to allow them to decide the best route to take.

“In this situation, we were able to find a way in which Eric could maximise his pension to the highest potential available to him in a way that he was comfortable in doing – and that’s what it’s all about. People should be able to trust and depend on independent financial advisers, so making sure all of our clients are 100% certain is vital for us going forward, as finances and security are extremely important.”

Drawing your final salary pension early

For a lot of people, early retirement is now an option, so ensuring that you are clued up with your pensions is a must. Most people who have had a number of jobs throughout their careers will find that they have numerous company pension schemes and will be looking to draw them without getting hit with the penalties to take the pensions early.

This was the case for Steven Parker, who got in touch with our Leeds based financial adviser team after seeing our extensive range of services on our website, to help him take the right steps throughout this retirement planning process.

Our pension’s advisers carried out a pension review and created a detailed analysis of finances and pensions, and recommended that he transfer one of his pensions to a money purchase scheme to draw down on the benefits over the coming years to the UK retirement age. This would enable him to fall back on his retained guaranteed pension schemes in order to fund the remainder of his retirement.

Steven said:

“When you are going through the retirement process, it can be a difficult thing to understand for many people, and that’s why I sought out advice from Heritage, who are extremely clued up when it comes to pensions and financial advice.

“I didn’t want to pay any additional tax or face penalties for taking out my pensions earlier, but I didn’t know how else to obtain my money without losing out. Thankfully, the financial advisers at Heritage were able to give me the best advice, in a clear and understandable way.”

Claire Stones, owning partner of Heritage Wealth Solutions, added:

“Here at Heritage, our Leeds based team of financial advisers are able to conduct in depth analysis of deferred pensions and some are far better retained, although due to the new pension flexibilities, there can be significant advantages to transferring them across.

“All of our financial advisers hold an occupational pension transfer license with the FCA, which means we are qualified to give this level of advice.”

Achieving retirement goals

Many over the course of their working lives build up pension funds without a solid plan in place. This certainly applied to Mr Johnson, who contacted our Leeds office for advice on how best to achieve his retirement goals.

Aged 59, divorced and wanting to retire as soon as possible due to poor health, Mr Johnson had built up a number of final salary pensions through different employers. Having never had these schemes reviewed, however, he expected to only stop working at the age of 65 when they became payable.

After completing a full expenditure plan, Heritage Wealth Solutions’ team of financial advisers found that the mortgage on his property was due to be cleared within the next year. Following a full analysis we then recommended transferring his final salary pensions into a Self Invested Personal Pension (SIPP) – a far more flexible arrangement.

As he will initially be able to take a higher level of income, this move allows Mr Johnson to retire when he turns 60. A sustainable level will be achieved once State Pension is available at the age of 66.

Mr Johnson said:

“It has been an absolute pleasure dealing with Heritage’s financial adviser team. When in full-time employment throughout your career it really can be difficult to find the time to understand your pensions and what options are available to you, but thanks to Heritage I can retire in the next 12 months confident in the knowledge that it is more than affordable. Without their advice I would probably be working until the age of 65!”

Andrew Dodd, Managing Director of Heritage Wealth Solutions, added:

“At Heritage we see a lot of people that feel they are in a worse situation than they actually are. Thanks to the new pension freedoms implemented by the government in April 2015 there is a lot more flexibility available, which in cases like Mr Johnson’s can prove extremely beneficial. Through careful analysis of his deferred pensions and a full cash-flow model planner we found on this occasion that these pensions would allow a much earlier retirement than he had first anticipated.

“All of our Chartered Financial Planners hold the occupational transfer licence, meaning we are able to consistently provide this outstanding level of advice.”

If you are based in Leeds, Huddersfield, York or the remainder of Yorkshire and require pension advice, please do not hesitate to contact our financial advisers on 0113 350 2080.

Andrew is the only financial adviser I have dealt with that I trust, and I have dealt with quite a few. I find his advice clear and honest.
J Bell, London
We now have a lovely new home and financial security, what more could you ask of a financial advisor. Thanks Claire
John, Derbyshire
We have found Andrew is very transparent about the charges he makes for his services and we feel gives great value for money.
PS & SS, Pontefract
Trustworthy, Intelligent, and Creative. Could not think of a better person to look after my wealth.
Dr R Habib, Algo Engineering
Claire explains often complicated financial products in a way which allows us to make informed decisions based on her sound advice on the various options on the market.
Linda, West Yorkshire
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