Chris and Alison came to us looking for advice on what to do with Chris’ pension. They are married, with three children. The couple were both already retired and receiving their Defined Benefit pensions from their previous employers in addition to their State Pensions. Chris had also accumulated a considerable personal pension pot and he had decided he may as well take it as there was no point in leaving it there forever.
Chris and Alison also owned two rental properties, which provided a good additional income. Alison has also recently inherited an investment portfolio from her late father.
During our discussions, one of the concerns highlighted was Inheritance Tax. All of their assets were due to be left to each other on death, and then the children equally, once they had both gone. We calculated the current Inheritance Tax liability for their children to pay was almost £100,000. They appreciated the children would still benefit from far more than they had received, but really didn’t like the idea of paying that much tax if it could be avoided.
When we mapped out their current income and expenditure, it was quickly clear that they didn’t need any additional income to support their lifestyle; in fact, they already had excess not being spent. We explained that Chris’ current pension pot was outside of his estate and therefore the money would not be subject to Inheritance Tax on his death. Therefore, drawing an income he didn’t need, paying additional income tax to take it and increasing the value of his taxable estate for no reason didn’t make sense. Chris quickly agreed.
Currently, Chris’ pension has Alison nominated as his intended beneficiary when he dies. We analysed whether it would be likely that, if Chris predeceased Alison, she would need to take an income from the pension pot, but it was clear that she wouldn’t.
We recommended that Chris did not take any income from his pension. Instead, we recommended that he change the nominated beneficiaries to his three children and viewed the pension as a tax-efficient vehicle to pass on money to them. His children can now use the inherited pension to provide them with an income, either immediately or during their retirement.
Chris and Alison are very pleased that they have potentially saved a lot of tax and provided more for their children.
We now meet with them regularly to monitor and review their investment portfolio and Inheritance Tax position.
“As a freelance photographer, finances in life can be precarious. Never able or inclined to delve into the world of stock markets or areas other than the standard offer from banks and building societies. I was recommended to Annetts and Orchard, who around 2004 started to advise me and handle any monies that I had available. We are not talking about vast sums, so don't be put off. Their professional but friendly way of doing business has kept me on a very happy footing since and never once have I felt badly advised - not the case with some friends of mine. Always with their client in mind my portfolio of funds has grown at a rate far higher than any individual could hope for. Retirement with a solid financial background is an area I could only have dreamt of. I would have no hesitation in recommending Annetts & Orchard, the sooner you start the better life will be.”
A client since 2004
“I would like to thank Annets & Orchard for helping me review my pension policies and for your honest advice of how I should reinvest my ISA when it reaches maturity. I thank you especially for helping to rearrange my Critical Illness and Life Assurance policy. You made a very sensitive subject a lot less painless with your professionalism, friendliness and understanding of my changed circumstances. You also have a good sense of humour, which helps as most of the things we had to sort through were quite heavy going for me.”
A client since 2013
“I have used Annetts & Orchard for the last five years. During this time, they have assisted me with a first-time mortgage and more recently a mortgage for my new house, as well as home insurance for both. House buying is extremely stressful, but I felt that this was one less thing I needed to worry about. Annetts & Orchard found the best product for me and the whole process from start to finish was as seamless as possible. I would not hesitate in engaging their services again in the future.”
A client since 2010
“I have been with Annetts & Orchard since 2008: I needed mortgage advice, and they were recommended to me by a trusted colleague. As my personal circumstances developed and my financial needs have changed over the years, the team have advised me on a range of pension and investment issues, and I feel I now have a solid financial plan in place. What I value is how Annetts & Orchard take the time to understand my needs and explore different solutions with me - I feel in control of my financial future but with the support and guidance of experts.”
Dr P Hornsby, Wokingham
A client since 2008
“I wanted to send a private message to say that, for what it is worth, I have worked for hundreds of companies over the last seven years whilst here - the biggest compliment I can give you and your company is that if someone came to me to ask for a recommended company for advice, you would be top of the list by a long, long way.”
A professional connection
“I was recommended Annetts & Orchard by a colleague who found their helpful and professional approach both useful and reassuring. I have certainly also found this to be the case. Looking to invest savings while ensuring a safe future for my family, I find that the team make uncomplicated and appropriate suggestions. They are never pushy and most importantly listen. I am very comfortable leaving them to handle my investment portfolio.”
A client since 1998
“My husband had just died aged 50 and I required a sympathetic and professional approach. I couldn't have asked for a better team. They were knowledgeable, efficient and kind. Without a doubt they helped reassure me and reduced my stress. Since 2011, the team have been attentive and willing to discuss any concerns I may have. The investment choices have done well for me. I would highly recommend them to anyone requiring financial advice.”
A client since 2011
"Annetts & Orchard have provided excellent financial advice and support to my 97-year-old aunt for some time. By providing sound financial help and making the investments on our behalf, we were freed from the worry and burden of decision making. I can therefore thoroughly recommend Annetts & Orchard, as I have seen for myself the excellent service they have provided to my aunt over a number of years."
A client since 2008
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