Case Study

Advising on pension consolidation and getting ready for a secure retirement

The problem

As our client began to consider options around moving to part-time work, with an eye on the future and stopping work altogether, they began to seek an understanding of what their options were.

With other investments made throughout their life and several pensions accumulated throughout their career, spanning several different schemes with different types of benefits, our client wanted to be confident in a solution that provided the best options whilst bearing in mind their ongoing, short-term, employment.

They had an idea of what income they needed to enjoy their retirement and now wanted to make sure that their affairs were structured in the most efficient manner to achieve this.

After establishing what our client wanted to achieve, we assessed the complexity of their current situation and produced a solution that provided them with control and confidence.

The results

At a glance, our pensions and retirement advice:

  • minimised our client’s tax bill now and in the future;
  • gave them a clear cash-flow plan that illustrated the various sources of capital and income;
  • structured their pensions to suit their needs;
  • incorporated their existing investments into the retirement plan;
  • provided our client with an investment strategy that they understood and was commensurate with their objectives;
  • tapped into the key benefits of existing pension schemes and consolidated remaining money into a flexible Personal Pension;
  • calculated a sustainable level of income drawdown from the newly formed Personal Pension;
  • provided peace of mind for our client, ensuring them that everything is actively managed by the experts at Canter Holland,
  • and continues to offer ongoing advice, keeping our client up to date with their options and any changes in legislation.

Our solution

After meeting with our client we established and analysed the current arrangements. It became clear that the existing investments and pension schemes in place were complex:

  • one pension scheme offered different levels of guaranteed income to be taken at a fixed date;
  • another offered ‘final salary’ benefits with a choice between income or reduced income and a tax free lump sum;
  • a third pension scheme included a Guaranteed Minimum Pension (GMP);
  • and the other pension schemes had ‘money purchase’ benefits invested in various unit-linked funds,
  • the ISA investments were spread across multiple investment providers and administrators.

Our client explained: “Before making any formal recommendations the Canter Holland team contacted each of my pension scheme and ISA providers. The team obtained full, up to date details of the value of the benefits and the form in which my benefits could be taken.

“Armed with this information they explained the various options available.”

It was agreed that the best way to structure the cash and income from the pensions would involve retaining the pensions with guaranteed annuity rates, along with the final salary benefits.

We immediately recommended taking the benefits from the pension that provided a Guaranteed Minimum Pension to secure the available annuity and consolidated the remaining money purchase schemes into a flexible Personal Pension. The ISA investments were consolidated with one provider and the income generated forms part of the overall income required.

The results

Altogether, we determined the most appropriate guaranteed annuity to take from the options available and the best combination of tax free cash and income from our client’s final salary pension – all to suit their circumstances.

Our client also benefits from our liaison with their various pension providers:

“Canter Holland always ensured they provided accurate information and requests were actioned promptly.”

“This was particularly important, given some of my benefits carried an expiry date. The money was transferred smoothly into the flexible Personal Pension and their investment management team ensured the trades were affected in line with our strategy,” our client explained.

“My retirement strategy formulated by the team at Canter Holland gives me peace of mind which allows me to enjoy life and not have to manage everything myself”

As a result of our pensions and retirement advice, our client can now enjoy the benefits including:

  • full understanding of their pensions and confidence in the decision made being right for their circumstances and future plans;
  • a six monthly review meeting with the team from Canter Holland to review progress and keep their plan on track;
  • full control, with everything visible in one place,
  • and an actively managed retirement service; which uses all available allowances, minimises the tax payable and keeps up to date with changes in legislation.

Learn more about how we can help plan for a successful retirement

Call 0845 127 1444 or hello@canterholland.com