We specialise in the analysis and reporting on occupational and personal pension plans to assess the suitability of consolidation.
Many people have a number of old pensions from previous employers, as well as one or more personal pensions. Each of these plans or schemes will have different charging structures and each contain different investment funds. Some might be ‘high risk’ while other plans might be sitting in cash.
Ensuring you have the correct investment strategy for your needs, the best charging structure for your goals and a pension plan that allows you to spend your money in the most efficient way is absolutely paramount. A pension switch or transfer to simplify and align your plans could save you thousands of pounds while reducing risk.
This case study is based on a real life situation. We have changed the name of our client as well as the names of the two insurance companies involved, but the situation and the figures involved are accurate.
BACKGROUND
NameMichael
Age39
FamilyMarried with 2 children
Pension 1Stakeholder Pension
Pension 2Paid-up pension from a previous employer
THE FIGURES
Stakeholder Pension with ABC Equitable£45,000
Group Personal Pension with XYZ Insurance£98,000
WHAT WE DID
1 SIMPLIFY the current situation
consolidate both old schemes into one new plan
2 COST reduction
reduce the intrinsic contract and fund charges
3 RISK & REWARD evaluation
comprehensive risk assessment, asset allocation and portfolio construction
4 REVIEW schedule
ensure the contract is on track to meet the intended retirement
THE RESULT
Even assuming the same growth rates as before, the new more efficient streamlined plan is projected to give Michael £66,500 more to spend in retirement
