• Dr Client aged 59 – Ms Partner aged 55
• NHS Consultant – NHS Income £80K pa, Private Practice Income £100K pa
• Four grown up children
• Mother-in-law financially dependent

Challenges

1. Uncertainty
Received previous advice to move his Private Pension to another provider but was unsure of the quality of the advice. (Had he moved it would have cost him £900,000 in lost value)

2. Retirement
Client was unsure if he had enough in assets to produce £72,000 pa of net income (indexed with inflation).

3. Pension Concerns
The client had learned that he may pay a 55% penalty tax on the benefits in his Private Pension over £1.5M.

4. IHT & Estate Planning

• There was an IHT liability sitting in the clients affairs of £200,000 immediately, and post retirement this would increase to £927,000.
• Dr Client wanted his four children to share in his estate but wanted the bulk of it to provide for his partner and her mother.

What We Did
a) We recommended the client marry his partner.
b) We recommended the client begin drawing his NHS and Private Pension before April 5th which meant he avoided the new pension legislation and any threat of penalty tax. This saved the client £225,000.Developed a bespoke investment strategy (within risk tolerances)
c) We split the clients pensions into Onshore and Offshore structures which saved £350,000 in IHT and reduced a lump sum tax liability on his pensions by £157,500.

d) The new pension structures we recommended allowed the client to vary his income annually between £0 and £128,000 pa each year depending on his requirements.
e) Using the tax free lump sum from his pensions we invested into tax efficient structures and reduced the clients last ever private practice income tax bill by £20,000.
f) We re-designed his investment strategy which meant;

• An appropriate risk profile for his investments
• Reduced fund charges
• Improved longer term performance across the total portfolio

The Results

• Generated total tax savings of £804,500
• Simplified his investment portfolio and improved investment performance
• Removed the uncertainty around his pensions and estate planning
• Provided security and certainty for his now wife, mother-in-law and children
• Produced his retirement income at the level required with the added ability to increase this substantially at any time