We were asked by a client if we could help her parents, Terry and Barbara, prepare for retirement.
Terry has an existing pension but he didn’t know how to achieve the best income. However, being of a cautious nature, he did know that he wanted the certainty of a regular income for the rest of his life and peace of mind that should he die before Barbara her financial future would be secure.
His existing provider had shown him several options, in something known as a ‘wake-up pack’ and Terry initially wanted me to tell him which box to tick.
This would have been a costly mistake.
We explained to Terry and Barbara that we are there to advise them on the best option, and, as we are independent, we could recommend a solution from any pension provider. Further conversations revealed that Terry has type two diabetes.
Our experience told us instantly that Terry’s illness meant he would qualify for an Enhanced Annuity and a higher income.
We completed further questions about the couple’s health and then shopped around on Terry’s behalf to find the provider willing to give them the highest income.
The result of this exercise, and not buying the Annuity from their existing pension provider, was an extra £800 per year, each and every year of Terry’s life.
How the client benefited from our advice
Terry and Barbara were overjoyed.
£800 might not sound a lot, but it will help Terry and Barbara enjoy their retirement that much more. It’s an extra holiday each year, giving them precious memories to look back on.
The moral of this case? Let us advise you, never take the first option you are offered from your pension provider.