Case studies
Using the example profiles below we will guide you through using RetireEasy LifePlan.
1 Background 2 Charts 3 Solution Back to case studies
Background: Raymond and Alice Berry
Raymond, a solicitor and his wife, Alice, a dentist, signed up to the RetireEasy LifePlan when they realised that they needed to be sure they had sufficient funds to meet their lifestyle expectations in retirement in 7 years time.
They love travelling and want to see much more of the world than they have been able to, given their busy lives.
Here’s how they learnt what they could do to make these dreams come true.
Age: 60 and 55
Retirement age: 67 and 62
Desired Income: £50,000, increasing in line with inflation
Assumptions:
Inflation – 3%
General Growth of Assets – 5%
General Yield on Assets – 3%
Home Value: £400,000 – Growing at 5%
Mortgage: No mortgage
SIPP: Raymond - Value today £100,000
Growing at 8%
Already drawing and has taken tax free entitlement
6% pa drawdown
Alice - Value today £100,000
Growing at 8%
Already drawing and has taken tax free entitlement
6% pa drawdown
State Pension:
Raymond - £10,000 pa commencing at age 67
Alice - £10,000 pa commencing at age 62
ISA:
Raymond 1 ISA totalling £10,000
Alice- 2 ISAs totalling £20,000
Growth and Yield as per General Assumptions
Personal Investments: Joint held - Fidelity Fund
Value: £100,000
Growth and Yield as per General Assumptions
What the LifePlan charts reveal:
The solution
Raymond and Alice then had a number of choices: They could plan to downsize their home prior to age 80; enter into an Equity Release transaction; reduce their Desired Income from Retirement Age; or they could reduce their Desired Income prior to Raymond reaching 80.
However, none of these options appealed to them.
Raymond and Alice still had 7 years to go before retirement, so they instead decided that they would make additional contributions to each of their SIPPs in that time. They would each contribute £20,000 to their SIPPs per year until retirement.
Retirement Planning made easy.
Your future may be a lot brighter than you think.
RetireEasy enables you to live the lifestyle you choose.
Retire Easy Ltd.
RetireEasy is the UK’s only independent retirement planning tool. LifePlan gives you an overview of all of your assets – including investments, pensions, savings, business assets and properties – and the income you will receive after liabilities such as debts, mortgages and income tax. It is not just a snapshot, but shows you how your finances will evolve throughout your retirement.
With Premium LifePlan you can model a Lifetime Mortgage, create and compare up to 10 scenarios of your financial future, radically reduce life insurance costs through a Life Assurance Premium Checker and you can print user-friendly narrative reports.
RetireEasy was established in 2011 and has helped thousands of users to understand their finances throughout retirement and adjust their plans to ensure that their money will last.
