Case studies
Using the example profiles below we will guide you through using RetireEasy LifePlan.
1 Background 2 Charts 3 Solution Back to case studies
Background: Peter and Jane Bush
Peter owns a successful landscape gardening firm and had intended to stop working in 6 months at age 65 when he planned to pass the business to his two sons. Aside from gardening he and his wife, Jane, are dedicated cyclists and followers of the Tour de France. Peter wanted to ensure they could both continue their lifestyle and the cycling tours in retirement but Peter’s pension was significantly lower than he had anticipated due to falling annuity rates.
Peter and his wife subscribed to the RetireEasy LifePlan and in this case study we find out how the shortfall in their retirement income was alleviated.
Age: 64 and 63
Retirement age: 65
Desired Income: £24,000, increasing in line with inflation
Assumptions:
Inflation – 2%
General Growth of Assets – 2%
General Yield on Assets – 2%
Home Value: £325,000 – Growing at 0%
Mortgage: no mortgage
Private Pension: Value today £200,000
Growing at 2%
Start age - 65
25% tax free lump sum taken
6% pa drawdown
State Pension:
Peter - £5,000 pa commencing at age 65
Jane - £6,000 pa already started
ISA: Value today £15,000
Growth and Yield as per General Assumptions
Bank Balance: Value today £20,000
Business Investment:
Own a landscape gardnening firm valued at £100,000
No income in retirement and no plans to sell
What the LifePlan charts reveal:
The solution
Peter had a number of choices including downsizing his home and selling the business but this would be difficult as his two sons continued to work there. Using their LifePlan, Peter and Jane could look at all these options but they soon found that by continuing to receive a net income of £10,000 p.a. (in this case the income came from the business but it could have come from any other job), the shortfall was deferred until Peter was aged 90, something they both could accept.
Retirement Planning made easy.
Your future may be a lot brighter than you think.
RetireEasy enables you to live the lifestyle you choose.
Retire Easy Ltd.
RetireEasy is the UK’s only independent retirement planning tool. LifePlan gives you an overview of all of your assets – including investments, pensions, savings, business assets and properties – and the income you will receive after liabilities such as debts, mortgages and income tax. It is not just a snapshot, but shows you how your finances will evolve throughout your retirement.
With Premium LifePlan you can model a Lifetime Mortgage, create and compare up to 10 scenarios of your financial future, radically reduce life insurance costs through a Life Assurance Premium Checker and you can print user-friendly narrative reports.
RetireEasy was established in 2011 and has helped thousands of users to understand their finances throughout retirement and adjust their plans to ensure that their money will last.
