Lewis and Olivia are both self-employed and in their late 20s. They had been married for a couple of years and had a mortgage on a house.
They were starting to think about their long-term future and, after a discussion with their accountant, decided to seek independent financial advice.
What did we do?
After getting to know Lewis and Olivia, we talked them through a number of options we felt would be appropriate for them, including investment property, ISAs and pensions. After explaining the tax advantages and protection that pensions offered, together we decided this was the best option for them.
They were keen to benefit from the extra growth that starting a pension early allows and liked the idea of the government paying tax relief into the funds.
We went through their attitudes towards risk and investing, as well as what kind of income levels they would like to achieve at retirement. This was particularly important for Lewis, as he felt he would want to retire before his state pension age.
We set up pensions for each of them, investing into appropriate long-term funds. We also ensured that the recommended contracts had the flexibility to allow them to increase, decrease, stop or start their contributions as life progressed.
Lewis and Olivia now feel confident about their long-term financial future and are pleased with the flexibility that their pension contracts allow.
A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.