A Tactical Retirement Plan


Mr & Mrs Client were referred to us by an existing client and a financial review meeting was subsequently held. Mr Client is aged 55 and Mrs Client is aged 56. Mr Client worked full time and received a salary, bonus and car allowance, and also received employee benefits, such as, death-in-service, company pension, private medical insurance and sick pay. Mrs Client was not employed and was unlikely that she would return to any form of employment.

They wished to review their financial situation with a view to maintaining their standard of living in retirement, and they also wished to discuss existing trust monies for a disabled relative who was in receipt of inheritance.

Mr & Mrs Client have been regular savers in the past and had already accumulated their wealth via pensions, savings and inheritance.

Following a comprehensive financial review on their current situation, their objectives were prioritised as being:

  • Mr Client expressed a wish to retire by the age of 60 but wanted to see what would be the situation if he retired now, as a 55 year old;
  • To review their current pension and investment arrangements;
  • To discuss investment options for Mr Client’s brother’s inheritance.

My role was to bring all of this together into a suitable and tactical retirement plan, which gave a realistic scenario for the client which they could see was achievable. Part of the research undertaken was to conduct a cash flow modelling exercise using fund projections and assumptions based on the client’s circumstances at the time. My recommendation was to transfer pension and investment monies into new arrangements, taking into consideration their attitude to investment risk, tax efficiency and flexibility, which allowed the client to accomplish what they wanted to achieve.

A second full review was held after six months which showed that further monies from an inheritance were to be invested and their pension and investment plans were aligned to their retirement planning. At this point, Mr Client wanted to seriously consider if retirement was feasible earlier than intended. We updated our cash flow model which showed that Mr Client could stop working and retire today, based on the current income and access to capital requirements, which came as a bit of a surprise to the clients.

Consequently, after further planning, Mr Client resigned from his full time work and worked three months’ notice up to December 2015. Now in control of time and money, Mr Client decided he wanted to keep active and subsequently formed a limited company to trade as a consultant. His ex-employer became his first customer.


Mr Client is happy in the knowledge that he doesn’t have to work but chooses to, in the short term, as he wanted to experience being in charge of his own business.
Mr & Mrs Client are now comfortable with their financial situation, and with the self-employed consultancy starting from January 2016, there is generally sufficient income available to delay any draw down of assets for the provision of retirement income later on.

We continue to review their situation at least annually, to ensure ongoing suitability of their financial plan.

David Wingar CFPTM Chartered MCSI
Certified Financial Planner