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How Roxboro helped John and Sarah

John and his wife Sarah are in their early sixties. Sarah suffers from a chronic illness and although John was trying to care for her, he held a senior job and commuted to London. To enable him to look after Sarah, he wanted to take a lower paid part-time local role. Although their savings would bridge the income gap in the short-term, they were concerned that they could run out of money in later retirement.

Establishing their retirement income needs

We worked with John and Sarah to estimate their income needs for now and in the future. We calculated that once they were both receiving their state and private pension incomes, their income would suffice. Until this time however, there would be a deficit of around £5,000 a year if John took the local job.

We combined flexibility with a guaranteed income and some growth potential

On account of her ill health, we were able to draw from Sarah’s private pension early and secure a high rate of immediate income. This provided an additional guaranteed, and tax-free monthly income.

John also had a private pension that he could access from age 55. However, it didn’t have any flexible retirement features and he would have been forced to buy an annuity. He didn’t want to do this. As he was relatively young, buying an annuity would have meant he would give up the possibility of future investment growth.

Instead, we moved John’s pension to a more modern arrangement that allowed him to access his 25% tax-free cash entitlement in stages. John could draw the balance of £5,000 a year tax free, without cashing in the bulk of his pension. This enabled John to take the local part-time role and spend more time, caring for his wife, without committing his pension fund to an annuity too early.

We continue to manage the pension investments and meet John and Sarah regularly to help them plan their next steps.

Book a free consultation today

Before you make any decisions, why not come and meet the team. You can tell us about your situation and go away with a clear idea of how we might be able to help.Call us today on 01273 711811 or email: