Scott - Contractor Case Study
Client recently started a new contract, estimated income of £200,000 p.a. Existing pensions worth £350,000 and pension contributions of £40,000 last year.
Problem
The client does not have any insurance to replace lost employee benefits since leaving his or her corporate role.
Is saving for retirement, but does not have a detailed plan or strategy to guide the process.
The client is overwhelmed by the amount of information available and does not know where to start.
Wants to be able to retire at 60 but also be able to buy dream home in next few years and support children through university.
Is earning significantly more since going consulting, but doesn’t know how to best maximize it.
Wants to retire at 60 and buy a dream home, but does not want to jeopardize children’s educations in the process.
Not sure how to balance all these elements moving forward.
Solution
Produce a financial plan targeting a retirement age of 60, building in all clients objectives such as buying dream home and how this could be achieved.
Review of pension arrangements with one being kept in place due to existing benefits on that scheme, the other transferred to a new provider for investment advice and management.
Regular contributions will be paid into plan and a lump sum taken advantage of unused allowances. Maximise available personal pension allowances of £40,000
Simplify overall financial situation by consolidating wife schemes.
Building a strong financial foundation for the business that includes both personal and professional insurance.
Outcomes
Clients have a clear plan targeting retiring at 60 and a wealth management strategy to achieve this.
Peace of mind that family is protected should the worse happen.
Tax efficient protection policies facilitated by the business.
Corporation tax saving on pension of £7,600.