Please note, the information presented in this page is for illustrative purposes only and does not constitute tax advice or recommendations.
It’s his birthday - 53 today. After a lifetime of work he wants to retire at 55 and enjoy the finer things in life. He’s worked out he’ll need around £31,500 each year, so he contacted us to discuss his options. Philip has some savings, along with money in three old pension pots. He also has a final salary pension which will kick in at 65, and he’ll receive the full state pension at 67.
We find that together these should provide an annual income of £25,600 - not bad but not quite enough. So we talk through his alternatives, from continuing to work and contribute to his pension, to spending less in retirement, to putting some of his cash savings into a pension pot so that he could benefit from tax relief and even investment growth.
Philip doesn't have to decide right away, so we agree to keep in touch and review his plans as his 55th birthday approaches. The point is Philip now understands his situation and knows precisely what his options are so his decision will be based on facts not guesswork.
It's the easy way to understand all the financial stuff you feel you should know but somehow missed.