Client Profile
Mr and Mrs Kennedy came to me with a complex array of pensions and financial products accumulated from various employers. Mrs Kennedy, in her mid-40s, works as a project manager for a global HR  company, and Mr Kennedy is a successful IT software developer in the same sector. The couple have no children or financial dependents and have paid off their home mortgage. They sought professional advice to simplify their finances and prepare for their future.

Challenges

• Complex Financial Situation: The couple had accumulated 18 different pensions and investment products, making it difficult to manage their financial affairs effectively.
• Retirement Planning: They aimed to retire at 60, needing clarity on their current pension contributions and how to best utilise their surplus income for investments.

Solution
We met to discuss their financial goals, risk tolerance, and current financial position. Together, we outlined their key objectives:

1. Retirement Goals: The couple expressed a desire to retire at 60 or earlier and wanted to ensure their finances supported this timeline.
2. Financial Simplification: They sought to streamline their financial affairs to reduce complexity and improve oversight.
3. Investment Strategy: We assessed their existing pension contributions to determine whether their surplus income could be used to maximise any tax allowances.

My Approach
I conducted a thorough review of Mr and Mrs Kennedys 18 current pensions and investments, advising on the best course of action. My recommendations included:

• Pension Consolidation: I advised Mr Kennedy to retain one of his four pension schemes as he had specific tax - free cash protection that would be lost if he were to transfer.  The remaining schemes we consolidated into a new personal pension scheme. Mrs Kennedy was advised to consolidate all of her pensions in to one. I recommended an appropriate investment platform that consolidated most of their financial investments in one place. This approach provided them with a greater sense of control, ease of performance review, and reduced paperwork.
• Investment Diversification: I suggested they channel some of their cash savings into stocks and shares ISAs for better returns while maintaining a competitive interest-bearing emergency fund for upcoming home renovations.
• Pension Contributions: Due to both being Higher Rate Taxpayers, there were significant tax advantages for them to utilise their annual pension allowance. I advised that they both begin contributing into their private pensions to work on achieving their retirement goal of 60.

Outcome

• Retirement Planning: The Kennedys now have a clear path to retiring at 60 on a joint annual net starting income of £30,000, which will rise to £45,000 once their company pensions commence and they reach state pension age.
• Cash Flow Forecasts: I provided detailed cash-flow forecasts showing how their investments will generate income over the next 30 years. These forecasts can be adjusted to reflect changes in their planned retirement age.

Annual Review and Ongoing Support
I meet with The Kennedys at least once a year to ensure their plans are on track.  During a recent meeting, Mrs Kennedy sought advice on whether they could afford to purchase a holiday home on the coast, while still meeting their retirement income targets. I illustrated how Mrs Kennedy could utilize his tax-free lump sum allowance to achieve this goal, providing projections that reassured them it was feasible without significantly impacting their retirement income.

Conclusion
Through our comprehensive financial planning, The Kennedys successfully simplified their financial situation while establishing a clear path toward their retirement goals. Our ongoing support ensures they remain on track, equipped to make informed decisions as their lives evolve.