Retirement Planning


Ann was 61 and explained to PMN that her objective was to fully retire at 63.

She had a number of pension arrangements and had accrued capital in various investments.

Ann had the following key objectives:

  • To provide an income, net of tax, of £30,000 p.a. to meet her expenditure.
  • To protect her pension assets for her family under the new pension rules.


  • Using cash flow modelling, we tested and validated the sustainability of her income needs.
  • We advised on the scope for additional pension contributions.
  • We tested the value of Ann’s pension benefits against the Lifetime Allowance (LTA).
  • We considered the priority order of withdrawals from her savings / pensions.
  • We checked carefully as to the amount Ann needed to retain in cash for contingency purposes.


  • We recommended that she make a significant lump sum pension contribution.
  • This secured tax relief at 40% before her earnings fell.
  • Her pension benefits were then valued at £800,000, within the current LTA (£1,030,000).
  • We recommended the priority order of withdrawals over four separate (five year) stages:



Period From Age 63

Source of Withdrawals


0-5  years

Cash / Deposit Account


5-10 years

Investment Portfolio


10-15 years



15 years plus



  • This enabled her to leave the most tax efficient wrappers to accumulate over the longest term.
  • Cash was parked in a suitable deposit account now to cover the first five years.
  • The pension plans can be passed to her children, free from Inheritance Tax.
  • We recommended her nomination of the beneficiaries under these plans, was current.
  • We designed and implemented a risk aligned portfolio within each tax wrapper.


  • At each review we benchmarked the results against the original cash flow forecast.
  • We tested the pension values against the LTA, to determine if benefits should be taken.
  • We topped up the cash reserve account, by withdrawing profits.
  • We rebalanced the portfolios to ensure that they continued to reflect Ann’s risk profile.
  • All meetings were comprehensively minuted.


This case study is an example only, and financial advice should always be sought before making any investment decisions.
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