Making dreams of early retirement a reality

Making dreams of early retirement a reality

Why did Linda need our advice?

Linda was recommended to us by a friend many years ago.

At one of our annual reviews she asked whether it would be possible for her to retire now, at age 55, without compromising the lifestyle to which she had grown accustomed.

What did we do?

Linda was a company director. She had always taken our advice and planned carefully for the future. However, Linda enjoyed a certain standard of living which we weren’t completely sure she could maintain if she retired early.

To answer the question, we used sophisticated cashflow forecasting software to show whether the income Linda needed could be generated from her existing pensions and investments.

We have looked after Linda’s assets and financial life for many years. Following our advice, including a large pension contribution only a year or so before, the cashflow forecast showed that she had indeed accumulated a portfolio of pensions and investments which were sufficient to allow her to retire now.

We also showed Linda that repaying her mortgage would help cut her expenditure, making early retirement more achievable.

Once Linda was confident that she could afford to retire she wanted to move forward quickly.

We moved Linda’s existing pensions into Flexi-Access Drawdown, withdrawing money from her pension, as well as other investments, for maximum tax-efficiency.

How did Linda benefit from our advice?

The cashflow model we produced looked years in to the future and gave Linda the confidence that she could afford to retire now, without compromising on her lifestyle in the short or longer term.

Furthermore, the modelling also included capital expenditure, for example changing the car and taking holidays, something Linda does on a regular basis!

The most tangible benefit of our advice is that Linda has now retired and is able to pursue the next phase of her life. However, this wouldn’t have been possible without the intangible benefit the cashflow modelling gave her; confidence.

Are you in the same position as Linda?

If you are working when you would rather be retired, we are here to help you understand whether that is a realistic possibility.

Many of our clients approach us resigned to working for years in the future. However, our advice coupled with the new Pension Freedom rules, often mean early retirement is more realistic than you might think.

Call David or Sam on 0115 969 3400. We would be delighted to help.

Please note:

The value of your investment can go down as well as up and you may not get back the full amount invested.

Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.

This case study is for information purposes only and should not be construed as advice. We strongly recommend you seek advice from an independent financial adviser prior to taking any course of action.