Margaret & Michael: retired with an income shortfall

"Michael and I had been enjoying our retirement for some time, but steadily we were beginning to notice how our outgoings were exceeding our income on a monthly basis. Although we have various pensions, investments and savings, we were worried about how to manage the shortfall, and didn’t know what to do to fix things.

Thankfully, we weren’t new to financial advice. We’d had an adviser in London during most of our working lives. But when we retired and moved away, the distance became a problem and so our adviser recommended Justin King, a Financial Planner more local to us.

At our first meeting with Justin, we discussed how Michael and I would ideally like to live out the rest of our retirement and what our goals and dreams were.  One of the goals we’d had in mind was to visit our children and grandchildren in Australia in a few years time – something we hadn’t been able to afford to do yet – and a goal that was in jeopardy because of our inability to save.

We didn’t understand how our investments worked

Part of the problem was that we didn’t understand how our various investments were being managed or what we were being charged. Justin organised the investments for us in a way that we understood – bringing them all together – with a lower charging structure, making it easy for us to actually see how they were performing.

Justin then created a lifetime cash flow forecast, which illustrated that we needed an extra £400 income per month to meet our on-going needs.  He also assessed the level of risk we were prepared to take – and more importantly, needed – to take to be able to live the life we desired.  He explained the high level of risk we held within our current portfolio and illustrated how we didn’t need it to meet our income needs – now or in the future.  So we agreed an appropriate level of risk that we understood and were comfortable with.

Peace of mind and a trip of a lifetime

Justin created a financial plan for us that illustrated how we could withdraw the additional £400 income we needed on a monthly basis from our portfolio and, even in the case of a severe market downturn, that we would not run out of money.

And probably the best result of all, our financial plan demonstrated that we didn’t have to wait three years to visit our family on the other side of the world! We could afford to withdraw money from our investments to fund the trip now.  So six months later that’s exactly what we did - making the trip of a lifetime to Australia. 

We gained so much confidence in our financial future by going to see a Financial Planner. We needed somebody to give us permission to spend our hard-earned savings in away, and give us the peace of mind that our money wasn’t going to run out in the years to come.”