Entering retirement is one of life’s major milestones. While it’s the start of a new chapter and a time for optimism, the significant financial restructuring involved can lead to stress, especially for entrepreneurs and company owners. Your financial affairs may have gained unexpected complexity over the last few decades and it may not be clear what the bigger picture looks likes.
You may be looking forward to a restful retirement, or you may have a new set of goals and aspirations you hope to achieve in the next stage of your life. Either way, you’ll need to establish new streams of income, and you’ll want certainty that these will meet your financial needs, even though you’re uncertain what your future needs might be.
Our expert insight can help to bring clarity and ensure you start off on the right foot. Here are some of the retirement challenges we’ve helped clients overcome.
Case study: Bridging the gap between early retirement and the pension age
Our client, a CEO of a FTSE 250 manufacturing company, wanted to retire early and sought our advice on bridging the gap between retirement and the State Pension age. He was unsure of his income needs and how to meet them.
How we helped:
Using cash flow forecasting, we were able to predict his future income needs, including lump sum withdrawals for major purchases, such as cars, holidays, and homes for adult children.
We constructed an investment portfolio that matched his risk profile and growth requirements.
Looking to the future:
The client will continue to send excess cash into his portfolio quarterly, a solution designed to reduce anxiety around the timing of investing large lump sums. He feels confident his needs will be met and that he will be able enjoy his retirement feeling that his finances were secure and stable.
“You did an excellent job in explaining the key points and making the outcomes clear and understandable.”
- Client of Tom Squire, Senior Investment Director, Investec Guildford
Case study: Improving investment performance to meet retirement lifestyle goals
Our clients, a couple, came to us for help consolidating their investments to improve performance as they approached retirement. We worked with them through their formal retirement, after which they undertook a period of consulting work, yielding a variable income, and subsequently wound up the business to retire fully.
Their goals were to achieve a good return on their portfolio that would support their needs through later life while allowing them to make large gifts to friends and family.
How we helped:
After reviewing the couple’s current investments and discussing our recommendations in detail, we agreed on the following action points.
- Consolidating all holdings into a diversified Investec portfolio
- Reorganising holdings to reflect the clients’ risk profile
- Moving investments into an ISA to reduce the tax burden
- Maintaining their pension arrangement, which was in a state of good financial health
Looking to the future:
Over the past five years, the portfolio has returned over 52% (net of fees and withdrawals) versus a benchmark performance of 45%. The clients have been able to make substantial gifts and look forward to being able to continue to pass on wealth while maintaining the lifestyle they want.
“The returns on my investments have been consistently competitive and the level of personal service is excellent. We have been pleased to recommend you to friends, who are just as delighted.”
- Client of Emily Groom, Investment Director, Investec Guildford
Considering your next steps
Whether your concerns around retirement relate to these topics or something different entirely, our wealth managers can help you enter this life stage with confidence and peace of mind.
Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN.