The couple in this example have saved regularly but, like many people, they weren’t sure if they were saving the right amount into the best place, or if they’d saved enough for a comfortable retirement.
We looked at the numbers
They were overpaying their mortgage by £1,000 per month, but they weren’t paying much into their pensions.
If they continued as they were, with only the minimum of pension contributions, the couple would start to run out of money in their early 70s. As you can see from the graph, this is when most people’s living costs go up due to increased need for care and support.
Our proposed financial plan
We suggested different ways of saving, including into private pensions, which would allow the couple to live comfortably now, while saving a lump sum to help clear any outstanding mortgage balance in the future. They’d have a plentiful pension pot that should last them well into their 80s.
Outcome – So, will they have ENOUGH for a happy, comfortable retirement?
Yes. By making the changes we proposed, the couple now have plenty of money to live on today and are putting the money they’re saving to better use for a more comfortable retirement.
Most importantly, they now feel reassured they’ll have the retirement they want.
Notes on how to read our charts
Financial Case Studies aren’t always the easiest thing to read. We’ve made ours as clear as possible, but if you’d like to know more, we’d be happy to explain.
When we work out your Financial Plan, we create two charts, Before and After.
BEFORE shows your current situation, and how your money is expected to provide for you in the future.
AFTER suggests how it could provide for you after some changes. These plans can be revisited regularly to ensure your money is always working hard for you.
The money coming in
Employment – the money you receive from your salary, bonuses, dividends etc.
State pension – the pension you receive from the government.
Other pensions – income from any company, private or nest pensions you’ve paid into.
Money Purchase Pensions
Savings and investments – money from ISAs, Premium Bonds, stocks and shares.
Asset Liquidation – money you could release by selling assets such as cars, paintings, antiques, stocks, shares.
Estate credit – the money you’d get from the sale of your home and any other property you own.
The money going out
Planned withdrawals –big purchases or expenses, such as a new car, home extension, holiday or gift.
Shortfall – the difference between what you’re spending and your income.
Total need – how much you need to live comfortably and enjoy your life and retirement.
Basic need – the minimum needed to live, but probably not the life of your dreams.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.