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 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

 

Peter and Jane case sample 1 Next: sample 2 Peter and Jane case sample 2

What the LifePlan charts reveal:

Peter and Jane case sample 3 Peter and Jane case sample 4 Peter and Jane case sample 5

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.

Peter and Jane case sample 6


 

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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.

Premium LifePlan not only provides live updates on stocks and fund values, provided by Morningstar, and you can model a Lifetime Mortgage, create and compare up to 3 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.

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