Case Studies
CASE STUDY 1 – FINAL SALARY SCHEME

Lionel has worked for 20 years with his employer and is coming up to retirement. He has one main final salary scheme, and a second smaller final salary pension scheme. He would like to know if there are options instead of simply receiving a fixed guaranteed income for life, and he is seeking flexibility in using his funds in retirement to meet certain objectives. He also wishes to leave a legacy fund to his dependants of at least £20,000.

PX Pension Exchange undertakes a full analysis of Lionel’s pension scheme benefits through our CARE approach. One of his pension schemes provides an excellent level of benefits (compared to the transfer value), whereas the transfer value from the secondary pension scheme looks better to transfer, considering Lionel’s overall position. After careful consideration of all the valuable benefits a final salary arrangement can provide, we recommend Lionel retain one pension where it is and transfer the second scheme to a different type of pension arrangement. There could be disadvantages to giving up a guaranteed fixed income for life however our analysis demonstrates that this course of action better meets Lionel’s objectives and optimises Lionel’s financial position bearing in mind his risk profile, capacity for loss and retirement aims.

CASE STUDY 2 – MAKING LIFE SIMPLER

George was finding it difficult to keep track of his pensions, particularly as he was receiving separate statements for the four plans at different times during the year.

As George’s advisers we were able to support him to understand the statements and explain what they mean in terms of his retirement. Therefore, our review looked closely at George’s existing arrangements, what they were, where they were invested and what terms / any valuable benefits were attached to the policies. We also looked at the costs of transferring i.e. exit penalties, setting up costs.
Using its CARE approach PX Pension Exchange was able to review these pensions and find more suitable solutions for George taking into account his attitude to investment risk, and in turn saving him a substantial amount in fees and charges. In addition to the cost saving this makes life easier for George and sets his pension up to maximise growth in future.

 

CASE STUDY 3 – PENSION CASH IN

Michaela has a pension fund worth £200,000 and is considering cashing it in. Recognising the importance of seeking advice to understand the tax implications of pension fund withdrawals Michaela approaches PX Pension Exchange to assist. We review Michaela’s fund and advise her whether taking her benefits as cash is in her best interests and the most appropriate course of action.

Depending on how the pension benefits are drawn, tax may be deducted at an initial higher rate than would normally be payable, which would subsequently need to be reclaimed. PX Pension Exchange works out via our CARE approach that if Michaela was to stagger her ‘cash in’ payments over time, she would pay a lower overall rate of tax. We advise Michaela and assist her to exchange her existing pension arrangement into one which provides her with the required flexibility for her retirement, saving Michaela tax in the process and allowing her to access the capital in line with her requirements.

 

CASE STUDY 4 – PENSION ON DIVORCE

Joe and Ruth have been married for nine years and have recently been granted a divorce settlement from the courts. As part of the settlement, Ruth has been awarded a share of Joe’s pension scheme.

Ruth and Joe are unsure how to put the divorce settlement into action, to allow a share of Joe’s pension scheme to pass into Ruth’s name.

PX Pension Exchange works with Ruth, considering the court documents, to explore all the options available ensuring that the appropriate share of Joe’s pension is transferred into a pension in Ruth’s name that is suitable for her aims and objectives.

Note that as for the other case studies, we are also able to undertake this work where Ruth/Joe (or both) have emigrated from the UK to live abroad, and/or where final salary pensions are involved.

 

CASE STUDY 5 – INTERNATIONAL CLIENT

John is from the UK and over age 55. He emigrated to Australia a few years back and has a UK pension scheme worth £350,000. He approaches PX Pension Exchange to ascertain whether there is a more favourable set up available now that he has moved abroad.

PX Pension Exchange, through the use of available pension products in the UK and abroad designs a strategy via our CARE approach where John’s fund is optimally set up considering the UK and International markets. PX Pension Exchange also undertakes an analysis of his existing product to determine whether any valuable terms or benefits are attached to the existing policy, which may be lost on transfer. The recommendation we make for John will save him a considerable amount of future taxation and provides John with greater flexibility on how to draw his pension fund over time.

 

 Complaints


Our aim is to provide you with a professional and confidential service that delivers the highest possible standards. However, there may be a occasions where you feel this has not been achieved and should you wish to make a complaint about any aspect of the service we provide to you, you can do this by writing to welcome@pensionexchange.com or by telephoning us on +44 (0) 330 947 477 where we will try to resolve your concern at the earliest time possible.
A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 023 4567.

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