Oliver and Wendy case study

Oliver and Wendy would like

They would like to be in a position where Wendy can retire early but still maintain their current standard of living. Wendy will receive her State Pension when she’s 66, and this along with their other pensions will be enough to fund their retirement

• Wendy to retire early so they can enjoy more quality time together and with their family
• A reliable income for a set time to help bridge the gap between now and when Wendy’s State Pension begins at age 66
• A solution with low exposure to risk
• The option to withdraw additional money if something unexpected happens.

Suggested actions

Based on their circumstances, Oliver and Wendy’s financial adviser suggests they need an extra £12,500 a year over five years until Wendy begins receiving her State Pension. Using Oliver’s £120,000 pension pot, their financial adviser says that a Fixed Term Retirement Plan might be the most suitable product as it can provide them with the flexibility they are looking for. Oliver and Wendy can bridge the income gap for five years with a Fixed Term Retirement Plan:

Correct at the market condition of 15 September 2022

Benefits for Oliver and Wendy

Oliver and Wendy will be reassured by knowing that they will be paid a guaranteed income for the five years until Wendy’s State Pension begins. This will allow Wendy to retire early.

• They can spend more quality time together, with their family.
• The fixed payments will help top-up the income they already receive from Oliver’s DB pension so they can continue enjoying the lifestyle they’re used to.
• When unexpected expenses occur, they have the security of knowing they can make up to three withdrawals from the maturity value.
• Flexibility to assess their options at maturity and adapt their retirement plan if required, to suit their needs at that time.