Cash Flow – Client Story

Instead of giving you the corporate Speel of how useful cash flow would be to you I thought it be more useful to give you a real life scenario that I encountered recently.

A client approached me without any knowledge of how many pensions he had from previous employers. The starting point is to gather all that information into one place which we do on the clients behalf and give him an understanding of where he is today which you could refer to as position A here.

Most people know that they’ve had pensions but they don’t know where they are, what they are, or how much they are. At the meeting he said yet again it’s probably not enough for you to look at without really knowing exactly what it is that he had. We then discussed his retirement age and he told me that he probably will have to work to 65 – he was 45 at the time.

There is no financial plan in place and age 65 was mentioned with no substance, just an age that he thought he would have to work at it.

His initial reaction was he may have had pensions around £30-£50,000. After gathering all the information together we established that the pension pots were actually in excess of over £200,000. Having then discussed how much income that he and his wife wanted in retirement we were able to identify positioning and then have a clear idea of where he wants to be in position B.

We keyed in the pension details and identified that in fact he could retire five years earlier at age 60 on the assumption he made minimal contributions based on his turnover each year into his pension.

Before approaching us for financial advice he had no idea what he had, how much he would want in retirement or indeed even if he could retire.

After two meetings he left with a clear understanding of what he has, where he wants to be and what he has to do to get there – along with a much clearer age of when he can actually retire based on some substance.

This wasn’t a highly complex meeting. It was a case of sitting down having a simple straightforward conversation, doing the leg work on behalf of the client – who let’s face it nobody wants to chase pension providers – and creating a plan that was specific to them fully informed of what their future planning looked like and the impact of their actions today.

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Strategic Wealth Solutions LTD  is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website