Case Study 2 – Trustees

In this example, four members of the same family were all members of the same pension fund, a Small Self-Administered Scheme (SAAS).

It was a common pool, which gave no real consideration as to whether it was appropriate for each individual. No personalised risk tolerance assessments had ever been carried out. As might be expected however, they all had very different attitudes to risk.

After running our life planning model and doing detailed risk tolerance profiles, we were able to look at the way their money was being managed and make more suitable investments. We took into account each person’s objectives regarding income or growth, depending on which was more important for each individual at that stage in their life.

Once these had been established we were able to make recommendations regarding retirement dates and pension provision. Of course, it makes sense for them to retire at different times, but the possibility of this was only highlighted through the financial planning tools.

This case demonstrated how using financial planning tools effectively can make the most appropriate options very clear.