Retirement planning

Some 15 years before their intended retirement date, our long-standing client who had been introduced by his accountant had a thriving business and was doing so well that they could contemplate a prosperous early retirement, funded by the sale of their business. We nevertheless persuaded them to make regular tax efficient monthly payments for retirement provision and to allocate similar further medium-term savings towards the cost of private education of their children.

Later on business conditions worsened and their income declined so that much of their free capital, after paying for school fees, was effectively consumed in maintaining their lifestyle. Thanks however to the segregation of their retirement funding, beyond the reach of creditors of their business, they were able to avoid penury in retirement and with our further guidance to provide for underlying guarantees that their pension income would not fall, while preserving the ability for their retirement funds to achieve investment growth.