Douglas – Utilities Company
“Ploughing through pension paperwork after a long day at work is a tedious job, especially when your family wants your undivided attention. However, my experience of financial advisers hadn’t been great. It seemed to me that once they had sold me a policy I wouldn’t hear from them again.
I had some important questions about my pensions but also wanted to build a long term relationship with an independent financial adviser who charged fees rather than taking commission.”
40 year old Douglas came to Trentham Invest wanting to know whether he should keep his three pensions where they were or move them. One of these pensions was a final salary scheme from a national utilities company.
What we did
Douglas’ two money purchase pension plans were limited in their investment choices. It therefore made sense to firstly consolidate these into a plan that offered the facility to select top fund managers.
Next, the final salary scheme benefits were well within the Pension Protection Fund limits so our recommendation was to stay in the scheme rather than transfer out. This decision would be reviewed annually.
- The amount of paperwork for Douglas to review was reduced by moving two pensions into a single plan.
- The new plan provided greater investment choices.
- With a trusted relationship, he now understands his pension statements, has improved confidence and clarity overall.
- Douglas wasn’t taking full advantage of the tax relief available. Having identified this he was able to increase his monthly contributions by £62.05 without any tax penalty.
- Commission would no longer be paid to an adviser who gives no service.
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.