Retirement planning Harvey Curtis Case Study

Retirement planning

Trevor had reached age 60 and his small printing business was flourishing. He needed to make an investment in his business in order to expand but was having difficulty securing finance for this purpose.

Trevor fully intended to continue working until at least age 65, although he thought he might like to reduce his working hours gradually in the future. He had 4 pension pots, which had a total value of £240,000. He wondered whether he would be able to take some of his tax-free lump sum but without also generating income from his pensions, which he didn’t need at this stage, and on which he would pay income tax.

Our financial planner, Frances Boiling, was able to combine all of Trevor‘s pensions into one drawdown pension plan and arrange for a tax-free lump sum payment of £20,000 to be released to Trevor – this represented one-third of the maximum tax-free lump sum available to him.

Trevor did not have to receive any income from his drawdown plan (so there was no additional tax to pay) and the pension could continue to be invested for growth.

Trevor will have access to a further tax-free lump sum in the future, and as he approaches age 65 and reduces his workload, he can supplement his earnings by drawing income from his drawdown plan.

Independent Financial Advisors