Thomas – Global Finance Institution
“I was scared stiff that my final salary pension was underfunded and wanted to understand my options as a deferred member or a pension beneficiary or whether I should transfer out. Despite the company acting as the administrators of the scheme, getting forecasts out of them was impossible. I needed far more certainty as this pension was all I had to rely on in retirement.
I’m really pleased I had Nicola on my side to lead me through the techno jargon and provide a thoroughly researched recommendation that was laid out in simple plain English. Now I can focus on enjoying my retirement rather than worrying if the money is going to be there”.
54 year old Thomas is remarried and wanted a clear understanding of what he should do regarding his final salary pension from a global financial institution. One the one hand he felt compelled to start drawing his pension now as he thought he would get a guaranteed amount if it later went to the Pension Protection Fund (PPF), but on the other he didn’t want to lose his chance to get at the funds in his ‘pension pot’ in the future.
Thomas had been out of work and living on savings for nine months and knew he would have to start drawing some pension within a year if nothing changed.
What we did
Our first task was to set out all of his options as a deferred member, pension beneficiary or if he transferred out. We also provided a forecast of pension benefits for the next three years.
- We made the administration of his pension and finances really easy to follow..
- He received a cash lump sum of £78,001 today rather than waiting more than 10 years for the final salary scheme’s normal retirement date.
- A legacy for his wife of £109,598.
- Provided more flexibility with the assets and resources.
Note: The events and figures quoted in this case study are from a real Trentham Invest client; however, the names have been changed to protect client confidentiality.