Easing into Retirement
Joanne has spent most of her working life as a senior executive in a private sector bank. As she moves into her 60’s she wants to take a step back and free up more time for family and other things she is passionate about in her personal life, such as travel. However, she feels it is a little early to stop working altogether and would like to ease into retirement by cutting back to three days a week at work.
In order to make sure Joanne is able to enjoy her additional personal time to the full, we advised her to start to drawdown from her pension as she moved into part-time work. This allowed Joanne to gain the freedom she wanted at this stage in life, without any sacrifice in the quality of lifestyle and financial flexibility she enjoyed while in a full-time role. Her drawdown plan also allowed for lump sums, meaning holiday funds are on hand to continue her travels.
As Joanne reaches state retirement age and stops working entirely, she will start to receive her state pension as well as continuing to receive income from her drawdown plan. However, as time moves on, the financial demands of Joanne’s lifestyle will become less and while still enjoying holidays she does not plan to travel as frequently. As a result, we would reduce the income from her drawdown plan to ensure its longevity.
This plan gives Joanne the financial freedom to fully enjoy her retirement, with peace of mind that when she eventually passes away, her remaining pot will be there to pass down to her chosen beneficiaries.