The best time to plan is yesterday; the next best is today.
The earlier you start planning for your retirement, the stronger your situation will be, but it’s also never too late to start looking into your pensions. If you find you wish you knew more or that you had started strategising sooner, don’t worry – at ML Financial Associates, we are always happy to help, whatever stage of life you’re at and however much or little you know.
Beth and Steve*, early 50s, had never really reviewed their pension before they approached us. The many pension plans out there, and the different approaches to preparing for retirement, can be a little overwhelming – that’s why seeking expert financial advice is crucial. At ML, we seek to remove the stress and give the best advice for you and your circumstances – and that’s exactly what we did for Beth and Steve.
Who We Helped
Beth and Steve both work full-time looking after other people – Beth as a nurse and Steve as an HR consultant. However, when it came to their pension planning, it was time for them to receive some expert support. The couple are both in their early 50s: a lot of their friends have been discussing retirement of late – both what they wanted to do, and how much it would cost! – and the pair realised that they hadn’t given their own planning any thought.
When they came to us, they were a little embarrassed to admit that they had never really reviewed their pensions, telling us that they saw retirement “as a long way off”. After listening to their peers, they found themselves wanting some advice on the best way to ensure their retirement was as good as their friends were planning.
The Goal: Financial Freedom
No one solution fits everyone. Before making our recommendations, our team of expert financial advisors worked closely with the couple to learn about who they are, their specific financial situation and their goals for the future.
To begin this process, we started by asking them to complete a Pre-Meeting Questionnaire. We don’t just work from numbers on a form, though: once this was complete, we held a “Discovery Meeting” where we got to know them and talked about their answers in great depth. The goal was to learn what “financial freedom” looked like to them, and what it meant to them to have the retirement they were now so keen to have. These conversations can get deep and sometimes emotional, so we know the value of having these face-to-face. From this point, we could make sure that we were tailoring our advice to best fit their needs.
Don’t worry if you don’t know much about your current pensions – making sense of these for you is exactly what a pension advisor is for. Very little was discussed about their current plans. Instead, we asked them to complete some letters of authority at the end of the meeting, which would allow the team at ML to gather all the hard facts about the pensions and investments they had in place already. Beth had a Defined Benefit pension with the NHS, whilst Steve had several plans he had accumulated over the years. He knew little about them, and whilst he was making additional payments into his current workplace pension, he knew little about that either.
Steve and Beth were in a good position in some regards: their mortgage was almost paid off, and they also had some cash savings in various deposit accounts. Even better, their two children were now self-sufficient and financially independent, with some possible grandchildren somewhere on the horizon.
This put them in a strong starting place, but there were still many factors to consider so we could make the most of these advantages, and make sure their future security was not impacted by making the wrong financial calls. We worked closely with them to recommend solutions in their best interest, as well as making sure they felt empowered by new knowledge and insight into their situation.
The Solution
When we received all the relevant information at the office, we got down to work. We reviewed Beth and Steve’s current plans, what we liked about their situation, and the options they had in terms of functions and fund choice. From here, we began to create a financial plan that would allow them to use their current pensions in a more efficient manner, with some small adjustments in terms of how they made contributions, and altering some of the fund choices that simply weren’t working for them as they would have hoped. Through these changes, we were able to put them on a stronger, more secure path to their retirement goals than ever before.
To further strengthen what they had in place, we also helped the couple to decide on some structure and discipline in terms of increasing contributions, in a way that was comfortable for them. They were keen to do this, as through our adjusted plans, they could finally see the real differences these could make. Lastly, we scheduled regular reviews, which would allow them to actively track their journey, and would allow us to make any adjustments required along the way.
A Happy Ending
If you plan your retirement with us, we stick with you on the journey, reviewing your pensions and making sure you are ready as your retirement date approaches. That’s just what we did for Beth and Steve.
Those early meetings with us were almost a decade ago, and we are delighted to confirm that the pair have retired, are living comfortably, and have two grandchildren they get to spend time with and spoil.
Retirement can seem a long way off, but preparing for it today helps to ensure you reach the place you want to. It is our pleasure to work with people like Steve and Beth, to set you up for the security and freedom you’ve worked for.
If, like Steve and Beth, you feel unsure as to your current retirement plan, get in touch with ML Financial Associates today for a consultation. We can shed some light, empower you with a clear plan, and get you on the right path for your future.
*Names changed for privacy
