Case Study: Strategic Retirement Planning for an Experienced Professional

By Beth Wilkinson, Chartered Financial Planner

Planning for retirement is never one-size-fits-all. This case study highlights how tailored financial advice helped a single professional in her late 50s build a tax-efficient retirement strategy, help maximise her pension benefits, and gain clarity over her financial future.

Client Snapshot

• Age: Late 50s
• Marital Status: Single
• Employment: Experienced professional, approaching retirement
• Assets: Multiple pensions, company share scheme payout
• Net Worth at Start: £1 million
• Retirement Goal: Age 70, maintain lifestyle, reduce tax exposure

Objectives

The client approached us with several key goals:

• Review of multiple workplace pensions
• Help maximise tax-free cash and pension tax relief
• Ensure sustainable income through retirement
• Improve tax efficiency across investments
• Put in place robust estate planning
• Gain confidence in navigating market volatility and investor behaviour

Strategic Actions Taken

1. Pension Contributions & Tax Relief
We calculated her Annual Allowance and Carry Forward capacity, enabling a gross pension contribution of £183,996, which cost her only £110,397 net thanks to 40% tax relief* — a 67% boost from tax relief alone.

2. Investment Planning
We invested £143,560 into a Unit Trust Feeder, designed to automatically utilise her £20,000 ISA allowance each year. This strategy transitions funds into tax-efficient wrappers over time, reducing future income and capital gains tax exposure.

3. Salary Sacrifice Arrangement
Implemented through her employer to boost pension contributions while reducing income tax and national insurance liabilities.

4. Pension Review
Six workplace pensions were reviewed to see if they were still meeting her objectives effectively.

5. Tax Correction
We discovered underreported pension contributions on her tax return. A letter to HMRC resulted in a £19,000 tax refund.

6. Provider Complaint Support
We assisted the client in drafting a complaint to a previous pension provider due to their delays. She received £4,800 in compensation.

Estate & Legal Planning

We referred the client to a solicitor to draft:

• A comprehensive Will
• Lasting Powers of Attorney for both Health and Financial matters

This ensured her wishes were legally protected and her affairs could be managed appropriately in the future.

Ongoing Support

Our relationship didn’t end with implementation. We continue to provide:

• Regular reviews of fund performance and asset allocation
• Education on market behaviour, volatility, and income sustainability
• Long-term planning to transition taxable investments into tax-efficient wrappers

Outcome

• Client gained clarity and control over her retirement strategy
• Significant tax savings and investment growth achieved
• Net worth increased to £1.8 million
• Retirement plan aligned with lifestyle goals and financial security

Key Takeaways

• Tax relief and carry forward can dramatically enhance pension value
• Strategic use of wrappers like ISAs and Unit Trust Feeders improves long-term tax efficiency
• Proactive advice can uncover hidden opportunities and correct costly errors
• Emotional and legal readiness are essential components of holistic financial planning

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and the value may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

*Tax relief over the basic rate was reclaimed via her tax return and invested into the pension.

Wills and Lasting Powers of Attorneys are not regulated by the Financial Conduct Authority.

The advice given was provided after a full evaluation of their specific needs, circumstances and requirements.  The solutions provided may not be suitable for everyone and the information provided here does not constitute advice.

Although the content of the article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.