The early retirees

• The client is likely to experience a sudden negative cash flow and loss of earnings.
• Mortgage holidays offered during the pandemic have come to an end, putting the client in an uncertain position.

Your advice opportunity:

Your advice can help your client to access their wealth held in investments and pensions in the best, most tax-efficient way to supplement their income.

• The client’s capacity for loss may be lower than before, with little opportunity to recoup or replenish their savings.
• The client may face a potential shortfall in their retirement income due to loss of contributions and/or a need to access their pension funds earlier than planned.

Your advice opportunity:

Your expert assessment of your client’s attitude to risk, capacity for loss and cash flow will provide the valuable insight they need to determine the right course of action going forward.

• Entering the decumulation (withdrawal) phase of retirement earlier than planned means your client’s asset choice needs to be reviewed to help preserve their wealth.

Your advice opportunity:

Helping your client stick to their retirement plan and avoid a kneejerk reaction to withdraw their money at this crucial time could help their pension fund last longer, demonstrating the value of your advice.

Resources to support you:

• Investing through volatile times

• Early retirees have a clear and urgent need to access their pension funds but face huge complexity and risks if they take money out in the ‘wrong’ way.

Your advice opportunity:

Sound advice to prevent a client taking a ‘DIY’ approach to accessing their pension can avoid significant risks such as their pension fund running out or their family not being supported financially after their death.

• Older pension arrangements may not offer full withdrawal, investment, and death benefit flexibility.
• Consolidating the client’s pensions into a modern plan may offer better value for money.

Your advice opportunity:

Recommending a modern pension arrangement, such as the Collective Retirement Account, can help your client to benefit fully from the pension freedoms and avoid PAYE and tax issues when withdrawing money.

Resources to support you:

• Managing the Lifetime Allowance
• Collective Retirement Account - Flexible withdrawals