How we helped Lucinda to look forward to the future

Making it possible to create a comfortable long-term future 

If you want to enjoy the same standard of living in later life as you do while working, you need to start planning well in advance. We help our clients set up arrangements that will ensure they can look forward to the long-term future with confidence and optimism.

Getting to know Lucinda

Lucinda had always managed her own finances, and had a portfolio of ISAs and private pension plans that she had set up (before joining her current employer), without professional advice, over the years. She had also accumulated a substantial amount in her employer’s in-house pension plan. She is single, with no children, and has always kept very busy – singing in a choir, playing bridge and volunteering at her local food bank. When we first met her, she was starting to feel as if work was getting in the way of her social life, and thinking maybe it was time to retire. 

Why Lucinda needed our help

Lucinda wanted confirmation that she had enough money to retire on, including the income from her pension pots and her state pension when she reaches the age of 67. One of our longstanding clients recommended us to Lucinda, so she arranged a meeting to consult us about her future. We talked to her at length about her long-term plans and wishes, and her attitude to risk. She asked us whether there was anything specific she should be doing with her ISAs or her mother’s old home.

Lucinda’s mother had lived into her nineties, and Lucinda wanted to be sure her income would last if she were also to live that long. However, she had no immediate dependents or heirs, so she didn’t need to worry about inheritance tax.

She didn’t feel particularly knowledgeable about investments, so she wanted an active management service to make tax-efficient investment choices on her behalf.

Our Canaccord Wealth solution

We started by building a cash flow model to reassure Lucinda that she could achieve the same standard of living in retirement as she was enjoying while still at work. 

Her company pension was too inflexible for her needs (limited fund choice and post-retirement options), plus she had a handful of other schemes from previous employers. We amalgamated these pensions and arranged them so that the majority of her income would be subject to zero tax, with the rest taxed at the basic rate.

We discussed annuities. Lucinda might be long-lived like her mother, so an annuity might ultimately be a good choice. However, it also means handing over a large sum of money to the annuity provider, so we decided to revisit that option in a few years’ time.

We also discussed what to do about her mother’s house. Letting it would provide an income, but also the aggravation of updating it to make it suitable for tenants. Would it be better to sell it and invest the proceeds? Lucinda is still to make a final decision on that and when she does we will relook at her financial plans.

We looked at strategies for generating income, both before and after her state pension kicked in at age 67. These need to be flexible, in case she ever needed more income – for example, if she needed full-time long-term care.

What happened next

Lucinda hasn’t retired yet, but we are ready for when she makes that decision. We will then put our plans into action, including tax reduction strategies, a flexible pension scheme, and a discretionary managed portfolio to ensure that her investments are working as hard as possible.

Keeping in touch

We check up on Lucinda at intervals, to see whether she’s fixed a retirement date yet. Once she’s taken that step, we will hold regular reviews and meetings with her, to ensure her plans are on track for the retirement she wants.