In late 2013 I met a wealthy couple William and Margaret, age 58 and 59. They both had well paid jobs, a lovely old cottage, a French holiday home, buy to let property, investment funds and a mix of pension plans. Initially they simply required a new ISA each, using his investments and capital gains allowance. I asked them about social, environmental and ethical funds and Margaret was keen. When I showed William like for like performance figures, this soon ended his doubts about such funds.

Autumn 2015 and William was fast approaching age 60 and the maturing of an old pension. It had a high guaranteed annuity rate of 9.8%, almost double the current market rate. However the plan was not fully suitable for him as there was no option for a spouse’s pension. So with our advice he opted for a full pension, with no tax free cash (because even as a higher rate tax payer it will be very hard to beat that level of income, without risk and guaranteed for life) and the full 10 year income guarantee.

At the same time Margaret had just retired from teaching and started her Teachers Pension. However she also had a stakeholder pension and an additional voluntary contribution scheme. She wanted to maximise the benefits from these, based on achieving a target net income. When I asked about her health she disclosed a back injury and so we looked at enhanced annuities. This gained her 9% extra pension income for life, with a 14 year income guarantee. We agreed to defer her stakeholder pension to the next tax year to limit her income tax position.

In Summer 2016 we transferred her stakeholder pension to a modern, flexible, drawdown pension. This enabled her to start an income equal to her expected state pension, which only becomes payable at age 66. At that point she intends to stop her flexible income and leave the pension plan to grow, for the benefit of her grandchildren.

A year later we met again under our standard fixed fee Shilling service. This time we prepared a full cashflow report to show that William could retire early at age 62. He was finding it hard to continue working as a self employed architect, since Margaret had stopped teaching. They had so many things they would like to do. So in April 2018 William finished work aged 62. At first he felt guilty, coming from a farming background, but now he has become used to their new lifestyle. This has become even busier with new grandchildren, overseas holidays and visits to France.

After a few discussions around inheritance tax they have sought independent legal advice in the UK and France, updated their wills and amended the ownership of their French holiday home.

We review their investments and cashflow planning each year. At present we are reviewing the charges and performance of their discretionary fund manager.  The aim is to simplify and de-risk their investments whilst keeping a close eye on tax and charges.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate Estate or Tax Planning or Will writing.