The 54 year-old man was set to re-marry after his first wife’s death but needed to find money to pay off debts and fund the wedding.
The case was referred to Kim Sare, a Chartered Financial Planner, who founded Integrated Paraplanning Solutions, an outsourced Paraplanning firm based in Bristol.
Ms Sare, a full STEP Diploma holder, has written in the latest Planner Casebook feature in Financial Planning Today magazine, to explain how she worked through the case.
Read the article in full HERE.
Ms Sare got a call from a Financial Planner client asking about the costs of providing research and a recommendation report for a client who was seeking to transfer out of his Gas Company defined benefit (DB) pension. He was also a deferred member of three other DB schemes.
Ms Sare said: “Very rarely however, does such a case involve four defined benefit pensions alongside personal pensions and lifetime allowance tax issues.
“In addition, a client whose personal situation and objectives changed twice throughout the financial planning process, resulting in recommendations that couldn’t have been foreseen at the start of the advice journey – some six months prior.”
The client was nearing his 55thbirthday and successfully involved with two businesses as well as a new start-up, which were to provide an ongoing income throughout retirement in addition to his accumulated pension wealth.
The client was engaged to be wed later in 2017 following the death of his first wife and had some liabilities already so was seeking to use some of his accumulated pensions to clear down his debts and fund the wedding.
Ms Sare said: “His objective was to ensure that he had sufficient long-term income to see him through retirement but to get his hands on some of his pension income now whilst young enough to really enjoy himself.
“He was keen not to run out of money throughout his lifetime but content not to leave much behind - his fiancée was independently wealthy.
“There was a shortfall of income to be met by his pension wealth between now and 60 but this needed to be flexible – he might draw more from his businesses in the future - and as tax-efficient as possible, he was already a higher rate taxpayer.”
Find out how she dealt with the case by reading the full article on pages 17 and 18 HERE.
This issue also features:
• Inside My Business with Alan Gow of Argonaut Paraplanning who reveals some major plans for his company
• Columns from leading Financial Planner Julie Lord, PFS chief executive Keith Richards, CISI head of Financial Planning Jackie Lockie, Paraplanner Richard Allum and other key commentators
• A 5 page Special Report from James Nadal on the latest developments in Platforms
• New Investment Insider and DFM section with 200 DFMs listed plus DFM news
Plus lots more.
Our last issue was the most read ever so see what thousands of other Financial Planners, Paraplanners and Wealth Managers are reading.