Pension Review – Miss B

Miss B was coming up to age 65 and was looking to retire. She had two pension plans that she wanted to amalgamate and take the 25% tax-free cash from to clear her residential mortgage. It was time for a pension review. This Case Study shows the type of work and planning we carried out for Miss B in her pension review.

Use This Case Study As A Guide To A Pension Review

Her Situation

• Miss B was looking to retire at the end of the year.
• She wanted flexibility in the scheme to be able to take the 25% tax-free cash out but leave the rest invested for future growth.
• In addition, she wanted to be able to take monies from the plan as and when she needed to, with guidance.

The Next Step

First, we explained that one of her schemes was able to facilitate the flexibility that she was looking for. (As shown as Scheme A.)

The other scheme could not. (As shown as Scheme B.)

Therefore, the advice was not to amalgamate the two schemes together as the scheme with flexibility did not accept transfers in.

Next, we decided to transfer one of the schemes to match her risk profile. This will also give her the flexibility in how she could access her pension that she was looking for. (As shown as Scheme C).

We kept the flexible scheme (Scheme A) as it was competitively charged whilst also achieving an acceptable level of return in line with her risk profile.

Lastly, we helped her to take the 25% tax free cash from both schemes which would help her clear her mortgage. When she comes round to looking to take an income from the portfolio, we will provide her with guidance on how to provide her with an income in the most tax efficient way possible.

We will also look at her situation at the time and explore the ‘guaranteed’ income route should she wish to consider that.

Pension Review Outcome

Self-Invested Personal Pension Review

Our adviser recommended to transfer to a Self Invested Personal Pension and invest it into a portfolio suited to her risk profile. She has flexibility in the plan and we provide an Ongoing Review Service to help her manage the portfolio as well as guide her on any income she may take in the future.

Changes in legislation and tax can impact on the advice that we give to our clients. This case study is not guaranteed to work in all circumstances and is intended to be a guide.

Please remember that the value of investments can fall as well as rise.