Please note all of the characters in these stories are fictional. However all of the circumstances that have been mentioned in these stories can and have happened in the past.
Plan for your retirement
It’s never too early to start planning for your retirement. Time flies and, before you know it, you’ll be looking forward to getting away from the daily grind and enjoying some well–earned R&R. That’s if you’ve thought ahead and invested wisely.
Today’s pension market is complex and challenging. Not only is there a mind boggling variety of products available. With much talk of shortfalls and pressure on many established company schemes, it’s more important than ever that you seek professional advice.
At Essential IFA we are experts in retirement planning and can help you make the right choices in your pension provision to achieve your goals. What’s more, we are totally independent. So you’ll get objective advice that’s not biased towards
certain providers.
Ray and Sylvia’s story
In the 1970s Ray started his own printing firm, which quickly grew to employ 10 people. Over the years, profits from the firm have given Ray and his wife Sylvia a comfortable lifestyle, including exotic holidays and a four–bedroom detached house with no mortgage. Sylvia works for the firm as an administrator, but only draws a small salary.
Ray has never taken independent financial advice and rents his business premises. Unfortunately, business has taken a turn for the worse, with demand for printing slackening. The company may be forced into receivership and there is little chance of finding a buyer in the current commercial climate. With only a small amount in savings, Ray and Sylvia are worried about their retirement.
Ray and Sylvia’s future without retirement planning
- Ray’s business goes into receivership and the sale of the company’s assets only just covers liabilities.
- Ray and Sylvia have to sell their house and move to a one–bedroom flat, investing the capital released to give them a very modest income.
- They can no longer afford exotic holidays and are constantly worried about reductions in interest rates and the effect of inflation on their income.
Ray and Sylvia’s future with retirement planning
- Through the company Ray has been paying into a pension scheme for himself and Sylvia, which is building up a fund for retirement and also reduces the company’s tax liability.
- Ray uses his pension fund to help buy his business premises and lease it back to the company. Therefore, Ray and Sylvia’s retirement is being partly funded by rent that used to go to a landlord.
- Ray and Sylvia are not concerned about liquidating the company because their pension fund is protected from creditors. They can now afford an active retirement with a couple of holidays each year – and may even buy a second home in the sun!