Case Study: Real Results from a Personalised Financial Plan
When it comes to planning for a secure and successful retirement, many people know they need to do something but aren’t sure where to start. It can be a daunting landscape of tax adjustments, savings strategies, and investment reviews. That’s where we come in, providing clarity, efficiency, and real results through our personalised financial planning service.
Today, we’re sharing a recent case study showcasing the actual impact we’ve made for one of our clients.
The Challenge from the client:” Give us peace of mind we have everything in the right place, that we’re maximising our opportunities and minimising tax (and any other threats)”
Our client came to us after having recently retired and wanted to make sure they had ‘things in the right place’ to achieve their retirement spending objectives. They had a solid amount in savings, a few investment ISAs and a couple of personal pensions each. They also had small pensions from previous employers that were paying them a monthly income plus a rental property giving some rental income .
They wanted to maximise their retirement savings, reduce unnecessary tax liabilities, and ensure their investments were performing as effectively as possible.
For a one-time fee of £595, they received a comprehensive financial plan covering all these areas and more. Here’s a breakdown of what we achieved:
Solution: Targeted Adjustments with Tangible Results
- Income Tax Savings – £364 Annually
We identified that the way our client’s rental income was allocated wasn’t tax-efficient. By reassigning who received the rental income on a property they owned, we immediately saved them £364 per year in income tax. This may seem like a small adjustment, but even a few hundred pounds each year adds up significantly over time.
- Savings Account Tax Savings – £150 Annually
Next, we reviewed our client’s savings accounts. By reallocating these, we shaved off another £150 annually in tax savings. It’s surprising how much a simple reorganisation can make a difference.
- Investment & Pension Returns – A Double Boost
Our analysis revealed an opportunity to boost the performance of their existing investments and pensions. Through strategic changes to their investment strategy, we have identified that our recommended portfolio has almost double the returns of their existing returns over the past five years.
And while, as we always say, past performance is no guarantee of future results, even a conservative 1% improvement going forward could translate to an extra £4,000 annually. This could mean a substantial addition to their retirement savings without any further input from the client.
Results: Real Savings, Real Returns, and Real Peace of Mind
Let’s look at the total benefit our client received versus their initial cost:
- Total Annual Tax Savings: £364 + £150 = £514 per year
- Projected Annual Additional Returns from Investments: £4,000 per year
That brings us to a combined annual benefit of £4,514—an impressive return considering the initial £595 cost of the plan. And with these additional insights and peace of mind, our client can step into retirement confidently, fully informed, and ready for the road ahead.
Finally: Beyond the Numbers
Our financial planning service is about more than just savings and returns—it’s about giving our clients the confidence and clarity to live the life they envision. Here are some of the invaluable, non-financial benefits our client received:
- Retirement Clarity: We helped our client understand exactly when they can afford to retire. This is a crucial piece of information, allowing them to plan, prepare, and look forward to a clear future timeline.
- Spending Freedom in Retirement: One of the biggest worries for retirees is knowing how much they can comfortably spend. Through careful analysis, we provided a roadmap, giving our client the freedom to enjoy retirement without financial anxiety.
- Inheritance Tax Planning: While it’s not always an easy subject to discuss, we helped our client understand any potential inheritance tax liabilities. This not only gives peace of mind but ensures their loved ones are well-prepared and optimally provided for.
- Tax-Efficient Withdrawals: Retirement funds need to be withdrawn wisely, with tax efficiency in mind. Our plan included a strategy for pension and investment withdrawals that minimises tax impact, allowing our client to keep more of what they’ve worked so hard to save.
- Peace of Mind: Above all, our client now enjoys a deep peace of mind. They know their finances are in capable hands and that they’re making informed, strategic decisions. This reassurance is priceless, as it lets them focus on enjoying life rather than stressing over finances.
Bottom Line: Real Value for Your Future
Our client’s investment in a comprehensive financial plan led to substantial savings and growth opportunities, making the initial £595 cost seem like a small price to pay. For anyone wondering if a financial review is worth it, this case study highlights that sometimes even minor tweaks can yield big results. And for those seeking the knowledge, assurance, and peace of mind that comes with working with a professional, the value of financial planning goes beyond numbers—it’s about achieving confidence and clarity for the future.
