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Alan’s Retirement

Alan approached Chartwell needing help in wrapping up his business. It was already a tough time for him having to part with his life’s work, the business he had built from the ground up and spent most of his waking hours managing. He wanted to ensure that all the loose ends were tied up quickly and efficiently so he could focus on his retirement and finally tick off those items on his bucket list!

As Alan did not sell his business we needed to create an income strategy to replicate his loss of salary and dividends.

Alan had accumulated a healthy pot within his SIPP however his biggest concern was how to draw on his income in a tax-efficient, sustainable manner.

After several meetings and discussions, Alan decided to take a proportion of his 25% tax-free cash lump sum from his pension to purchase a rental property from which, the rental income would provide regular ongoing income. Alan’s adviser then implemented tailored drawdown, a method by which a regular income is generated from a pension made up of 25% tax-free cash and 75% taxable income. The taxable income was set at his personal annual allowance meaning the entire income drawn was tax-free. Alan’s rental income, his withdrawals from his SIPP and his State Pension created an income strategy for Alan which enabled him to maintain his current lifestyle during retirement.