Michelle: Private Client

Background

Michelle became a client at gpfm four years ago, at which time she had very sadly lost her husband. As he had always handled the finances, Michelle felt she needed guidance and luckily, she found what she was looking for with gpfm.

At first, Michelle was working with Simon, one of the directors, but when she came in with this particular issue, Emma, one of the firm’s financial planners, took over the case.

Key Challenges

Michelle worked for two different companies between 1991 and 2014, and amassed two defined benefit pensions which she had not yet taken benefits from. As she no longer had a next of kin, Michelle wanted to be able to leave the capital sum to various family members and friends in the event of her death. This is not a feature of the death benefits available within a defined benefits scheme that she currently had.

If she had stayed as a member of the existing schemes, her wish to pass her capital onto her family and friends would not have happened automatically, as defined benefits only pass to a spouse or financially dependent person, neither of which Michelle has. On Michelle’s death the pension would just remain with the trustees of each of the schemes.

She also wanted to be able to draw the benefits flexibly, as she wanted to stage the income payments over a period of time.

Solution

Emma advised Michelle to transfer both of the pensions into one money purchase pension arrangement which had a competitive charging structure and good performance statistics. It was reinvested into a new portfolio of funds in order to maximise the amount that could be left to her family and friends.

Michelle was then able to complete an Expression of Wish form to confirm exactly who and in what proportion the pension funds should be left to.

The fact that the pensions were amalgamated made the administration of the pension for Michelle a lot easier. It also enabled Michelle to take the income she required when she wanted.

Quote from the client

The most important thing for Michelle was to feel taken care of. When her husband passed, she was devastated and her contact with first Simon, and then Emma, made her feel reassured.

“They can’t do enough for you and a lot of companies aren’t like that. You’re not just a number to them. gpfm are like a family and they always pick up the phone.”

About gpfm

gpfm are an independent financial planning company dedicated to the provision of personal, professional and objective-driven advice for our clients. We have been awarded the Chartered Financial Planners title by the Chartered Insurance Institute for offering high quality, independent and informed advice that meets the needs of our clients.

If you are seeking financial planning advice, get in touch with us today at enquiries@gpfm.co.uk or call 01992 500 261 now, and see how we can help address your financial future.