Drawdown Case Study – John £122,000

Jan 2011 john has £122,0000 with Standard Life

John is winding down work and has a provisional retirement date of age 65 he is now 63, he has been in his company pension scheme with Standard life for 20+ yrs and he was invested in a mixture of cash and with profits.

He wants to finish work in the next few months and would like to take some of his tax free cash and take it with him to Turkey where he has a holiday home.

After initial consultations John thought the only way to go was buying an annuity and taking the full tax free cash. We talked to John about Drawdown and the ability to not take an income and to take only part of his tax free cash.

We transferred the plan to a drawdown plan with a tax free cash lump sum of £5,000 and nil income as this was all that was needed from day one.

Jan 2012 Fund value £131,000

Review was done with John and he didn’t need any more tax free cash but it was stated that some money would perhaps be needed next year.

Jan 2013. Fund value £143,000

We agreed that the fund is going in the right direction and we scheduled in a meeting for Sept to look at taking out a lump sum of £13,000 for living expenses whilst out in Turkey for the year.

Sept 2013 – Fund Value £146,000

£13,000 was taken out as a lump sum and we looked at moving the funds from a balanced fund to a conservative fund. Simply because of more money being taken out and whilst we were looking at withdrawing it would be better to be more cautious.

As of Nov 2013 the fund is now at £136,000 after the £13,000 has been taken out.

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