Pension Transfer Advice For A Recent Widower

Some of our clients are unsure what they’re looking to do, financially, before sitting down with the team. A case in point would be Mr. H, who was going through a recent bereavement…

The case

This individual owned a small business in Cheshire. Aside from the day-to-day stress of leading a company, his wife had passed away a few months before we met, adding to his need for capable financial advice. Whilst the needs of his business could be addressed later, the priority was to review his personal finances and particularly his pension arrangements.

Mr. H also had three grown daughters. Their inheritance prospects – coupled with the bereavement – led him to Stratagem Financial Planning. His existing pension schemes required clarity. More than that, he was open to further investments, depending on what we found…

The solution

With our technology, Mr H.’s opportunities could be weighed up over his personal spending behaviour. Pensions are a common cause of concern; we wanted to give him the best awareness he’d ever find. We opted for:

  • An in-depth objective analysis to reveal his aims, budget and risk appetite. The client was a member of multiple Final Salary schemes, which were set to deliver much more income than he required. Combined, they would net £23,834 after tax.
  • A Pension Transfer that would allow Mr H the ability to leave a legacy of up to £697,725; this being the combined transfer values the schemes were offering. Retaining the schemes was considered, however, Mr H was stunned to learn that his daughters would only get a fraction of the transfer value figures he had been quoted if he suddenly passed away.
  • Flexible Pension Access that could give him more freedom with the new agreements. Mr H liked this approach as he would have access to his tax-free cash and income at a time to suit him. This meant he could potentially help his daughters purchase their first homes if and when this situation arose.
  • Tax mitigation by way of a personal pension – now, he’s able to leave his family up to £1,055,000 without a penalty. Mr. H told us he’d undergone a “massive learning curve” on pension details, and that there should be increased awareness on this type of planning for widows or widowers.

Want to become one of our success stories? Speak to the Stratagem Financial Planning team today.