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Income in Retirement

Future Planning Wealth Management has expert knowledge and systems in place to work with clients in helping to enjoy their lifestyle and maintain their standard of living when retired. This couple came to us after meeting with two other advisers and wishing for a third opinion.  

Client scenario:

  • Husband aged 68 and wife aged 65 
  • Married with three children 
  • Retired and both in good health 


  • Buy to let property portfolio of 4 houses in addition to residential home 
  • Pension income consisting of work pensions, annuities and state pensions 
  • Residential home valued at £280,000 
  • Mortgages held on each buy to let property and no mortgage on residential home 
  • Personal savings of £60,000 each held in Cash NISAs and £70,000 in Cash savings (£190,000 total savings) 

Client concerns:

  • Making sure that income is as high as possible to enjoy lifestyle in retirement 
  • Discussing Inheritance Tax (IHT) concerns for three children 
  • Is money working as smartly as possible - a holistic overall review 
  • Preference to keep non-NISA cash balance high versus repaying mortgages for spending 

Some of the work involved:

Meetings were held to accurately obtain all figures in full including details on all properties and associated mortgages, and to clearly understand goals.  Once this stage had completed, then we ran the number crunching exercises, together with understanding what the clients wished to see happen with their estate when they passed away.  A Risk Questionnaire was completed and an in-depth discussion regarding "capacity and tolerance for loss" was held. Different models were created to show alternative approaches and the recommended route.  

Understanding the nature of all current income was important, to ensure whether all pension income was guaranteed or not, increasing or not and also what would happen in the event of one client passing away, as one client had more income than the partner.  Seeing what plans were in place for repaying the buy to let mortgages, and if selling properties then how this would affect cashflow and lifestyle with reduced income, as there would be less rent then coming in.  


We presented a clear picture of both what the current position looked like and future position will look like, including answering "will we run out of money".  The great news was that the clients were not going to run out of money, and actually will be able to spend more .  Therefore alternative figures were also produced on the below: 

  • How much more could be spent without the fear of running out of money 
  • What would happen if either client passed away, to the other client's financial position 
  • What the Inheritance Tax position looked like and possible ways to reduce this for the children 
  • Reviewing existing mortgage rates, terms and payments 
  • Alternatives to keeping the NISAs in Cash earning both less than 1% AER and looking at whether to invest, or repay the buy to let mortgage balances off 

As a result, we showed the client how these changes meant that there would be:

  • Increased income from repaying the buy to let mortgages using Cash NISA and using the balances to invest and generate a higher income in a lower risk, low cost portfolio 
  • Slightly higher income tax however much more income.  This route was preferred rather than invest all Cash NISA money, which would have increased the risk significantly for the clients, which was not desired.  
  • Clients understanding how much more they can now spend and are planning two more cruises each year
  • Lower outgoings with mortgages repaid
  • Lower risk, as changes to interest rates previously would have meant an increase to mortgage payments and therefore less income 
  • The exact amount of Inheritance Tax due, and how this could be reduced so that the children received more upon death 
  • Increased income in event of husband dying so that the wife still would be able to enjoy a good standard of living 

And finally: 

Previously husband dealt with all of the finances and wife was not confident on figures.  Now, there is complete knowledge so that should husband pass away first, wife has excellent understanding on what the position will look like for her and how much money there is.  As a result of the above recommendations and work, clients have proceeded. They mentioned that one of the other advisers was recommending they invest all of the Cash NISAs, which would have increased their risk beyond a level they were not comfortable with and felt much happier with this strategy.  

There are many varying factors to consider, different allowances and vehicles to assist with scenarios similar to the above. No two cases are the same and if you feel you are in a similar position to the above, you are welcome to send an enquiry through whereby we can discuss if we are able to add value to your situation.

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I needed direction and organisation with my finances and assets. Sanjay Badhan helped me make sense of my money and what it meant to me. Spoke in plain English and wasn't pushy or "salesy" or making me feel uncomfortable. There was no rushing and in fact

Kieran Bristol

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