Pensions transfer and planning: Bob’s story

I was about a year from retirement when I approached AAB Wealth. This was my first time using a financial adviser, so it felt a bit like a stab in the dark, but I was impressed from the get-go.

My adviser, Richard, was very thorough – and seemed to know more about my pension arrangements than I did! We got on really well, and he struck me as being very trustworthy, honest and knowledgeable.

Making informed decisions

I had two defined benefit (DB) pensions – one with Standard Life, who I worked with for 23 years, and one with Scottish Widows.

Richard recommended that I move one and keep the other for a guaranteed inflation proof income. I chose to transfer out my Scottish Widows one – although I’d only been there for 12 years, it seemed slightly more generous.

From there, Richard and his colleagues set me up with a wrap SIPP.

Finding the right risk level

I felt very lucky because I transferred my pension out when the market was at its peak. Unfortunately the war in Ukraine broke out shortly after, so the funds haven’t grown much. That said, they haven’t sunk much either.

I’m in the ‘medium risk’ option, so it’s gone down a wee bit but not drastically. It’s certainly not keeping me up at night!

Helpful advice on retirement income

I was already planning to retire but, when I was coming up to 61, I got made redundant. The normal retirement age at Standard Life is 60, so I was at the prime age to take the money and run.

Richard advised me on that as well. He said that with my savings and some of the redundancy money, I could afford to live comfortably without drawing on my retirement benefits until 65.

Minimising tax

Richard advised me that there are a few beneficial factors that come into play by waiting until 65 to begin drawdown, including a bump in the tax-free lump sum.

He also advised I take a little bit of money now to soak up the tax allowance – Richard is very good at ensuring his clients don’t pay more tax than they really need to.

Personally, I’ve never worried about taxation. But I’ve also never been a high rate tax payer – whenever I’ve got close to that threshold, I’ve put money into my pension. But Richard’s advice makes perfect sense. After all, why pay more tax if you don’t need to?

Advice that’s worth the money

My friends have put off using a financial adviser in the past, believing you should do as much of it as you can yourself in order to avoid charges. But I don’t mind paying for Richard’s advice because I feel I’m getting my money’s worth from the guidance I’ve been given.

He puts in a lot of effort and time. I wasn’t expecting so much involvement. Sometimes our meetings last three or four hours, which sounds awful, but we have such a good laugh that I actually enjoy them.

My wife isn’t in great health, and when I brought her in Richard was pleased to meet her. He was excited to show her the risks, rewards and way forward. He took a 30-year snapshot, reassuring us that even in the worst market conditions, there’s likely to be a positive outcome at the end.

Enjoying retirement

Now that I’m finally retired, I get to do the things I enjoy. While I have enough money to galivant around the world, I don’t think I will – but I have been to a lot more gigs!

I love music, and I’m enjoying indulging this hobby. One of my retirement projects is to learn more about Jamaican reggae music. I also like walking my dog Lily, especially with my pals, as we can stroll around putting the world to rights. We’re like Last of the Summer Wine!

I enjoy being able to treat my family, too. My daughter recently learned to drive, and I was able to buy her a car. So, she’s the designated driver now!

“It’s good to know you’re with someone you can trust, and have someone to rely on in times of trouble.” – Bob

Get in touch and start planning your retirement today.