Peter & Carol - Background

Peter is 65 this year and has taken the decision to finally retire from his job as an architect.

Carol (a retired teacher) has been nagging him to give up work since she stopped 3 years ago.

They have a daughter (Sarah) and two grandchildren. Sam (age 9) and Rose (age 6).

Peter is giving up a salary of £65,000. They have no debts now and have a reasonable amount of investments. Their total net worth (including pension funds) is just over £950,000

They have always promised themselves that retirement would be the time where they catch up on missed travel ambitions, help out the family as much as they can and make sure they keep their minds busy

They are both planning on taking up tennis again and Peter in particular is looking forward to fulfilling his ambition to study (and enjoy) more wines.

Financially, Peter will shortly begin to draw benefits from his frozen final salary pension. He's also got just short of £200,000 in pension funds. He is nervous about present "low rate" for pensioners and fears they will have to cut back on their plans if the income just doesn't stack up. He is also particularly concerned about the security of Carol should something happen to him.

Agreed Goals

  • To provide security of income for their lifetime
  • To ensure they are able to cope with possible threats to wealth such as ill health, or care
  • To consider ways of reducing their potential inheritance tax liability

First- The Goal Setting Stage