A married couple in their 50s recently came to us, requesting that we review their pensions and insurances. This a client profile that we see quite regularly.
The pension funds were worth altogether c£150k. Our analysis found that the funds were invested way too conservatively for their attitude to risk and the time horizon. In a normal market, over the next 15 years, consolidating and re-investing the money will likely make them in the region of £60,000. The couple also had average charges of £1,800 p/a on their pensions. By moving into cheaper and better funds the opportunity exists to reduce these charges to £750 p/a.
Regarding insurance provision, they were massively over-insured. It is common that people tend to be either over or under insured. By reviewing the couple’s insurances and their wider financial situation, we are able to reduce their insurance costs from £5,000 p/a to close to £1,500 p/a. The new insurances will make sure they have more than enough cover if either husband of wife died, or were unable to work indefinitely.
After the initial free consultation, the couple agreed to a Fryer Glass full financial review at a cost of £750. The result of the review is a conservative reduction on pension and insurance charges of over £4,500. If they choose to move their pensions they will almost certainly be considerably better off when they come to retire in 15 years.
The financial problem: Poor pensions/insurance uncertainty.
The solution: Review and then move/change pensions and insurance.
The outcome: A better financial situation, reduced cost and peace of mind.
If this is a scenario that you can relate to, call Mark Fryer at Fryer Glass on 01276 301103 or email [email protected]