Options at Retirement

At Retirement Options

Kris & Krystyna

Kris was introduced to OCM Wealth Management to get some advice on his pension needs having recently retired, and was about to buy an annuity.

He and his wife Krystyna had a number of different pension and investment pots built up over their careers and needed primarily to secure a steady income from his accrued savings. The key to the planning was to understand exactly what level of income was needed to cover expenditure and what growth in excess of that was needed on the portfolio. Once these two figures were known then an outcome was developed on the whole portfolio to understand what growth was required to make the planned retirement sustainable over the long term.

The main challenge for Kris was that annuities were at rock bottom, so OCM Wealth Management looked at the different retirement options and then as a result of a full holistic review looking at the whole situation not just the pension in isolation, consolidated his pension plans into a single SIPP and structured all of the different investments into others structures that ensured he and his wife utilise all available tax allowances, now and in the future. The key following this planning was then to feel confident and safe in the knowledge that OCM are actively managing the asset structure to deliver the agreed outcome as regards to annualised returns and then gross income in a flexible manner from different elements of the total portfolio, in the most tax efficient way.

The combination of structures has allowed them to draw an income from the different elements of the combined pool of assets that will satisfy their expenditure requirements and this will be reassessed annually.  Another important factor with the overall structure that impressed Kris was that once the plan was finalised and income identified from various sources, the tax drag on the overall income equated to less than 10% on total income and also ensured that the Pensions remained Inheritance Tax effcient for as long as practically possible.

He was provided with a detailed financial plan to achieve his target financial objectives and a clear cash-flow projection. This plan set out all the factors that would affect the performance of the portfolio and took into account Kris and Kystyna’s attitudes to risk.

One of the elements of OCM Wealth Management’s service that most impressed Kris was the fund management – where OCM’s in-house Asset Management team are responsible for delivering the outcomes set out in clients’ plans. OCM’s approach to investments is unique amongst financial planning firms across the country, many of whom preferring to outsource the fund management to a third party.

OCM Wealth Management took the time to explain how it manages risk and how it rebalances portfolios. Kris was greatly reassured to see that from day one, OCM kept in regular contact, by telephone and email, to update him on his portfolio’s performance and to explain asset management decisions. He found this openness and transparency of communication a huge bonus, particularly at his stage of life when financial risk would be most unwelcome.

The charges that Kris pays for this service were very clearly explained up front and the value that he has received from OCM, being a unique blend of a solid investment proposition, combined with sophisticated financial planning and extremely completive pricing, is significant, even at this early stage.