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Case StudyPre-RetirementPlanningSummary:We helped a couple to work out whether they couldretire early based on their accumulated pensions andsavings. We did this by developing comprehensivefinancial plan based around their resources now andinto the future, taking as little risk as possible.

Background:A couple in their late fifties were referred to us by alocal accountant. They were investigating whether theycould afford to retire in the next few years. They hadaccumulated a number of different savings pots overthe years and each also had various pensions.

Problems/Challenges:Although they had significant accumulated assets theywere unsure as to whether this would be enough tosafeguard their desired future lifestyle.

They also wanted to know whether they could afford toretire early and if so, how this might affect their lifestyle.They were also concerned that their employmentpensions may be reduced due to the state of theeconomy.

Finally they wanted to reduce risk as much as possiblesince they would not be accumulating significant furtherassets.

Our approach:Initially we met with the clients to produce a financial lifeplan so that we could get to know them and work out afuture direction for their finances. In this meeting weestablished that they would ideally like to retire withinthe next 2 years and at worst at 65.

Following this we produced their financial plan bygathering all the information we needed on their presentincome and outgoings, assets and liabilities. We thenmade assumptions as to how these would change overtime based on a realistic assessment of theircircumstances and how their goals would affect theseareas. This enabled us to look into the future and workout whether they would remain on track to hit theirgoals.

As part of this, we assessed their existing assets includingtheir pensions and agreed a strategy to manage the risksof these investments in order to achieve long-term goals.

Outcomes and Impact:We were able to demonstrate to the clients that they couldretire now and still achieve the future lifestyle that theywanted while taking minimum risks.

We were able to assess different scenarios such as howtheir situation would change if they retired at differentages. Overall this gave them the confidence that theycould afford to retire whenever they chose to do so.

Despite this they decided not to retire immediately andinstead preferred to accumulate further assets for the nextfew years.

Continuing Support:Each year we schedule two reviews with the clients. Thefirst is to re-evaluate their financial situation and revisetheir financial plan so that we can take into account anychanges to their circumstances and re-assess whetherthey remain on target to meet their long-term goals.

The second meeting reviews the clients’ investmentportfolio and aims to keep it on track towards its goalswhile taking the least risk needed to do so.

Please contact usfor further details:

Woodruff Financial PlanningThe Colchester Centre, Hawkins Road,Colchester, Essex CO2 8JX.Email: advice@woodruff-fp.co.ukFax: 01206 266885

Tel: 01206 266882www.woodruff-fp.co.uk