Ready to retire

The clients

Peter and Angela contacted us looking for advice on their pensions. They were both already in receipt of their State Pensions but, until now, had continued working.

The time had come to retire, and they had nine pensions between them. They had been reading up on the options available to them but were looking for guidance.

What we did

We began with a discussion on what a good retirement would look like to them. We identified how much income they needed to cover the basic costs such as household bills, food shopping and maintaining the cars. Next, we agreed what they would like in terms of discretionary spending: money to go out with friends, pursue hobbies and take regular holidays. Finally, we considered their one-off spending requirements. Tina really wanted to change her car and they both wanted to help their only granddaughter pay for her wedding.

We helped explain the options available to them and the merits of taking a guaranteed income for life, such as an annuity, versus drawing down their pensions via a flexi-access drawdown pension and vice versa. We agreed that, seeing as their State Pensions easily covered their basic expenditure, they could leave the pension funds invested and draw an income. They were fully aware of the risks involved and how such risks could be managed.

We created a withdrawal strategy to match their spending requirements and rigorously stress tested it against past market conditions. No withdrawal strategy is completely fail-safe, so we explained the potential risks and what we could do to adjust the strategy if such poor conditions arose. Peter and Angela confirmed that they understood and were happy to proceed on this basis.

Finally, we combined their pensions to a single platform where the withdrawals can be managed efficiently, and a single investment strategy implemented.

The results

We meet with Peter and Angela every year to review their withdrawal strategy, ensure they are holding enough cash for spending and emergencies and the risk profile of their pension investments remains appropriate.

They both feel very in control of their retirement and live without fear of running out of money.


Click here to read our privacy policy.

Click here to read our privacy policy.

Annetts & Orchard is a trading name of Annetts & Orchard Ltd. We are authorised and regulated by the Financial Conduct Authority. You can find Annetts & Orchard Ltd on the FCA register (FCA number 820272) by clicking here. Registered in England & Wales (11503291).

Please note that the value of investments may go down as well as up and investors may get back less than they invest. Where these pages refer to investment performance it should be remembered that past performance is not a reliable indicator of future performance. The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details can be found by clicking here.

The guidance and/or advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. The FCA does not regulate tax or estate planning.

Click here to read our privacy policy.