Tax Efficient Retirement Planning for Couple in their Sixties


Retirement planning for couples can become complicated, and this is a great example of how to avoid just that. My clients in this instance were a couple in their sixties, living in Cheshire. Both worked in IT, although he had recently retired. They wanted an expert to cast an eye over their finances to ensure that everything was being managed in the most tax efficient, structured way possible as they put plans in place for their retirement.

Over the years they had accumulated around £500,000 across various ISAs, investment bonds and unit trusts with multiple providers. They also had pension policies from their employers (previous employers in his case).

First off the bat we did a comprehensive review of their finances to ensure everything was as tax efficient as possible. Their joint bond was signed over to him; as he was now retired, he wouldn’t be liable for tax when cashing it in. The money could then be put into a more tax efficient product, such as an ISA.

We consolidated all of their liquid investments and appointed a discretionary fund manager grow this within their attitude to risk, which weReit had ascertained as part of the assessment.

Their pensions were consolidated to a unique product that offers a minimum annual return, regardless of what’s going on in the markets. This was so that we could ring-fence a minimum income for their retirement.

With a portion of their investments, we established an inheritance tax loan trust in order to provide a tax free income, should they need it – at the same time being tax efficient for inheritance tax purposes.


The result of the review was that we consolidated all of their investments, being as tax efficient as possible in all areas to save money, and have put in place a structured income for their retirement. They are now looking forward to a long and happy retirement with appreciating assets and peace of mind.

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