10 years from retirement
Meet Joe and Jean
Joe was a solicitor, aged 55. He is married to Jean, and they have three grown up children.
Their mortgage had recently been repaid, so Joe found himself with a £1,000 per month surplus. He had £170,000 in pensions; 30% of his pensions’ value was lost in 2008. He had done no tax or financial planning, so was worried about his retirement prospects.
Joe and Jean’s objectives
Joe was concerned that his retirement income was poor. He didn’t know what to expect; he did however feel he and his wife would need a retirement income of £45,000 per annum.
He had lost confidence in his pension and was unhappy with his investment losses in 2008. He just wanted his family’s affairs managed proactively and thoroughly, so he could retire with peace of mind.
What we did
As part of the fact find, we discovered that Jean had worked as a teacher for 10 years before having the children. After further research, we were able to confirm that Jean’s projected superannuation at age 60 would be £8,000 per annum.
We completed State Pension forecast forms on their behalf, which confirmed that Joe and Jean’s State Pensions would be £7,500 and £6,000 at age 65 and 60 respectively. We calculated that Joe’s pension, accrued at say 6% with no contributions, would be worth around £305,000. This would provide an income of circa £15,000 per annum; although after 10 years of inflation, this would be £11,000 per annum. The total projected income in today’s terms at 65 is around £32,500.
The couple’s portfolios were restructured to reduce the overall risk and structured to generate
average returns of 6-8% over 10 years. We recommended that they contribute £1,000 per month into pensions to generate 40% tax relief. This at 65 (with 6% returns) would be valued at approximately £215,000; generating an income of £8,000 in real terms.
A small shortfall continues to exist, and Joe and Jean can decide whether to invest more, take more risk, accept a lower level of income in retirement or defer retirement until age 66 or 67.
Finally, wills were reviewed and updated.
Joe and Jean today
The couple now have a structured financial plan which is reviewed annually. Their level of investment now suits their views of investment risk.
A shortfall exists, but with annual reviews, this will be manageable.
What our clients say
The majority of my time has been spent running a business and concentrating on making the correct day-to-day decisions; it was essential for me to gain advice and guidance. Phill and his team at RPG have been able to guide me and provide a balanced portfolio. Without turning to RPG, I would have been unable to arrange my long-term financial future. They have a vast amount of knowledge and have produced the results essential for when I decide to retire.
Because our business was growing every year, we didn't really look at how the money we were making was put to best use. We needed some expert advice to lead us in the right direction. Anthony O'Connor has always been very helpful and approachable whilst dealing with our affairs. We are left to do what we do best: run a business. We would highly recommend anybody who is seeking financial advice to look at the services Anthony and his team can provide.”
We decided to use Phill Owen to help us with our financial planning as our savings, mortgage and life policies did not seem coordinated. Phill provided a clear plan for the future. He helped us organise our wills, inheritance matters and our future retirement. With our face-to-face catchups and regular emails or phone calls, Phill has always given us sound advice. This, in turn, has given us the peace of mind that our financial matters, now and in the future, are in good hands and in good order.
Retired Dairy Consultant and Retired NHS Therapist
I started using RPG on the advice of my bank when I started my own limited company. They have guided me through potential pitfalls in such a friendly manner that, even though our relationship has always been professional, I still consider them as friends. This journey has gone through setting up my company, tax, VAT, insurance advice, setting up wills, buying a different house and ensuring my wife and sons are provided for, both now and in the future. It has been such an easy journey. I would have no hesitation in recommending them to anyone.
My wife and I have been clients of Phill's for 25 years; 20 of which were with RPG Chartered Financial Planners. 17 years were prior to retirement and nine years have been post-retirement. Their involvement has been crucial to dissipate our financial and estate management concerns. RPG’s staff have been exemplary; always approachable and quick to respond. We have no reason to believe that this tremendous working relationship will not be as successful in the future as it has been in the past. We have no hesitation in recommending them.
Retired Veterinary Surgeon and Retired College Lecturer
I am a Chartered Structural Engineer and have very little knowledge, experience or understanding of financial affairs and investments. Approximately six years ago I started to think about early retirement. For the past six years RPG have provided excellent financial planning and tax-efficient advice in the form of a combination of pension and cash ISA investments, which have grown significantly to such an extent that early retirement is imminent.
Early in 2000, we decided we needed financial advice. We contacted Phillip Owen, who created a financial planning strategy that addressed all our needs. We were impressed with his advice, and so a partnership began that has lasted. Original goals are still being met and often exceeded, and investments are successful. There is long-term financial planning in place, even for the youngest family members. I highly recommend Phill and his team.
Retired Teacher and Volunteer Sector Adviser
We were in need of an adviser who could provide a wide spectrum of advice for managing our portfolio. We met Anthony on several occasions to understand his breadth of experience, and we were very impressed. Anthony's team took the reins in consolidating and rationalising our portfolio. We are very pleased with Anthony's service and we look forward to a long-lasting relationship with him.
IT Consultant & Accountant
Anthony O’Connor has advised me over several years about pensions and general financial planning. I have found him knowledgeable, supportive and a person who provides good solutions . He has a “can do “ approach and makes things happen. I have recommended him to a number of friends and they are all happy with his support and advice He is always good humoured which is a good quality when planning ones financial affairs.