Consolidate to Decumulate
Paul agreed. “The guaranteed regular income coming in from my final salary pensions is perfect for me, as it’s enough so I don’t need to worry about using my other assets to pay the bills.”
Consolidating those defined contribution pensions…
With the three defined contribution schemes, Neil worked to get them all consolidated into a single arrangement – including that tricky Clerical Medical scheme.
Paul’s new consolidated pension scheme was under Old Mutual, where Neil could provide oversight and from which pension drawdown was possible when Paul stopped working.
Paul’s got peace of mind…
Now 61, former IT project manager Paul has retired and has taken advice from Neil on how to draw down a small amount from his new consolidated pension pot for maximum tax efficiency.
“Between my savings, final salary schemes and drawdown fund I’m really happy with the mix of income I have now. I feel well-diversified,” says Paul, who is also using Drewberry’s ongoing service to manage his assets going forward. “I’d much rather have someone looking over my financial situation than manage it myself.
Using Drewberry ongoing…
“Previously I’d get pension statements year by year and I’d look at them and think everything seemed to be going along nicely, but I’m not an expert. Managing your finances yourself takes a lot of time and effort and there are better things to do in retirement than be a bean counter!”
“While I’d done some fund switches myself in the past and they seemed to have done okay, that was more luck than judgement! After I spoke to Neil, I actually found out that some of the choices I’d made put me in a higher risk category than I ideally wanted to be in, so it was really valuable to do that risk assessment as part of my review.”