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- A financial plan that gave Caroline permission to enjoy spending in her retirement
Careful financial planning gave Caroline, now in her 60s, something she had been missing: confidence in her money and her future. She can now retire earlier than expected, giving her more time to enjoy with her children and grandchildren.
At 60, Caroline was beginning to think seriously about retirement. She had built up significant pension savings over the course of her career and hoped to reach the point where work became a choice rather than a necessity.
However, a frustrating experience with her previous adviser had left her unsure about using the money she had worked hard to save. Arranging pension withdrawals had felt unnecessarily difficult, and she often felt she needed permission to access her own money. Although Caroline was in a strong financial position, she lacked the confidence to enjoy it.
Caroline wanted to understand what retirement could realistically look like and whether she could afford the lifestyle she had in mind.
This meant making sure her everyday spending would be covered, while leaving room for the things she wanted to enjoy. She was also keen to give money to her children and grandchildren during her lifetime, when it could make a meaningful difference to them.
Above all, Caroline wanted reassurance. She needed to know that she could spend and gift some of her wealth without putting her own future at risk.
Our first conversations focused on Caroline’s plans for the years ahead, rather than beginning with her pension figures. Once we understood the life she wanted, we worked out how much income she would need and separated her essential costs from more flexible spending.
We then created a regular, tax-efficient pension withdrawal strategy to provide the income Caroline needed. Three years’ worth of planned expenditure was held in cash within her pension, giving her a reliable source of short-term income without needing to sell investments during a market downturn.
The rest of her pension remained invested with a longer-term approach, helping it retain the potential to grow throughout retirement.
Clear financial modelling allowed Caroline to see how her plans might affect her wealth over time. We also included the gifts she hoped to make, so she could understand what was affordable before committing to them.
Caroline can now approach retirement knowing that her essential spending is covered and her longer-term plans remain on track. The cash reserve has reduced her concern about short-term market movements, while the wider strategy gives her confidence that her pension can continue supporting her.
She also feels comfortable giving money to her family now and seeing the difference it makes.
Perhaps the most important change is how Caroline feels about her finances. She no longer sees accessing her pension as something difficult or uncomfortable. She understands what she can afford and feels free to enjoy the retirement she spent her career working towards.
Our client’s name has been changed to protect their identity.
This case study is intended as illustrative purposes only, it does not constitute individual advice and should not be used to inform financial decisions.
They are based upon our understanding (at the time of advice) of current law, HM Revenue and Custom's practice, tax rates and exemptions, which are subject to change.
A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available.
The Financial Conduct Authority (FCA) does not regulate cash flow planning, estate planning, tax or trust advice.
