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CUSTOMER STORIES

In early 2017 Sebastian was looking for an effective solution to manage his retirement.

Having heard about a defined benefit transfer he approached Tideway to find out how this could apply to his circumstances and meet some of his needs.

Having worked for a large energy company for 33 years and recently celebrated his 58th birthday with his wife and 3 children he wanted to build a sustainable retirement that was both comfortable and enjoyable.

Sebastian’s specific retirement goals were

    • Pay off the remaining £80,000 on his mortgage
    • Receive £3,500/month in income – increasing for inflation
    • Pay as little tax as possible
    • Invest with a medium risk portfolio

 

Taking the transfer offer of £1.7m, Tideway were able to maximise the use ISAs, General Investment Accounts & Self Invested Personal Pensions to create an effective retirement strategy.  The use of a combination of different investment vehicles provided an opportunity to balance the risk and take full advantage of the different tax allowances available.  

The structure also gives Sebastian and his wife more flexibility with their retirement savings as their money is not held solely within a pension, allowing for changing tax rates and their personal circumstances.  The total net income amounted to £43,000 p.a., which equated to just over £3,500 p.m.  Sebastian paid £6,400 of tax, giving them a tax rate of 13.0%. compared to a tax rate of 20.4% if he hadn’t shopped around. 

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4 years later we have been able to achieve growth ahead of both inflation and asset class benchmarks on the portfolio. At Tideway, our core proposition is delivering a tax efficient and sustainable income for our clients in retirement, using the different tax allowances available and investing in a cautious but deliberate way. Sebastian worked hard for 30+ years and deserves to enjoy his retirement stress-free.

– Tideway Wealth Manager

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We are passionate about your finances and your future.

The content of this document is for information purposes only and should not be construed as financial advice. Please be aware that the value of investments, and the income you may receive from them, cannot be guaranteed and may fall as well as rise. We always recommend that you seek professional regulated financial advice before investing.