How we helped Delia to enjoy early retirement

Making it possible to retire early

In order to retire early, you usually need either a cash injection – through selling your business, for example, or an inheritance – or to make substantial savings into a pension pot. If you own your business, you can take up to £60,000 per year from the business within current allowances.

Getting to know Delia

Delia first consulted Canaccord Wealth 15 years ago, when she was in her early forties, to discuss a full financial planning service. Her main wish was to retire at the age of 55, so she wanted to create arrangements to achieve this. She had no partner or children, but was aware that her elderly parents might need her financial and emotional support in years to come.

Why Delia needed our help

She was already paying into a ‘patchwork’ of various pension pots, but these were designed to mature when she was in her sixties, and even then, she had no idea how much income they would produce.  She knew that the sale of her practice would also create an injection of capital, but at the same time it would no longer be providing her with an income.

Delia was worried about physical and emotional burnout if she kept working until her late sixties.  She knew she had to build up her pension pot, and plan towards the eventual sale of her business. Later on, she would need to decide whether to sell the whole of her business, or keep some interest in it to provide an income.

Our Canaccord Wealth solution

Our job was to help Delia prepare for retirement by accumulating enough capital to retire at 55. We talked to her at length so we knew exactly what she wanted. Would she like to retire entirely or continue working part-time? Did she want to move to the country/travel the world/volunteer at animal charities? How did she feel about risk and ethical investments?

Once we knew everything, we needed to create a bespoke service, we set to work.

We built a cash flow model to show Delia where there was currently a shortfall in her predicted retirement income, and explained how she could bridge the gap.

We consolidated her pensions into a flexible plan that would mature when she reached 55 rather than 65. We then showed her how to take advantage of pension and ISA allowances to build up her savings. We set up and managed a discretionary managed investment portfolio on her behalf, to ensure that her savings were working as hard as possible.

Delia was well on track to retire at 55. She had built up a substantial pension pot, and knew that the proceeds from selling her business could then be invested to provide extra income.

What happened next

When she reached 55, Delia decided to continue working part-time as a partner in the practice. We simply extended her pension plan to mature at age 60, invested the partial proceeds from her business, and adjusted her cash flow model to allow for her change of plans. She now hopes to retire fully in 2027, when she will benefit from the remainder of the sale proceeds.

Keeping in touch

We are in regular contact with Delia and have ensured that her pension pots and ISAs are ready for her new retirement date. We will stay on board to ensure that her income streams are tax-efficient and that her savings continue to work hard for her.