Key considerations that Jenny wanted to focus on during her review were to understand how the new pension changes affect her and how to plan for potential care costs in later life.”
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Retirement Advice Case Study
Jenny’s
Financial Position
Jenny - 68 years old retired marketing manager.
Defined benefit pension scheme £23,000 per annum.
Recently widowed and no dependents.
£300,000 life assurance lump sum from husband.
No mortgage on her home.
Cash savings valued at £38,000.
Financial Goals
Before I prepare a Lifetime Financial Plan for Jenny I would want to understand her financial goals and aspirations now she is fully retired, and the type of care she would potentially require in old age. I would review her current income and expenditure and explain how she could benefit from the flexibility introduced by pension changes.
Lifetime Financial Plan
After inputting all the information into her Lifetime Financial Plan, I would model how the £300,000 life assurance lump sum could be invested to fund her retirement costs, and fund any care costs she may require. I would also consider the value of her current property and model how much income she could generate to further supplement care costs if necessary.
Conclusion
Jenny now appreciates that it is never too late to start financial planning. She is reassured that she could sell her home and invest the life assurance lump sum to cover any potential care costs. This has given her the confidence to maintain her current spending and enjoy her retirement while she is in good health.
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