Sustainable Pension Income

Following a divorce in her early 70s, our client received a pension sharing order worth approximately £275,000 from her ex-husband’s pension. She had very little experience with pensions or investing and felt unsure about what her options were. Initially, she believed purchasing an annuity was the only way to secure a regular income and simply wanted to know whether it would be possible to receive £1,500 per month sustainably. 

We spent time helping the client understand how pensions work and the different options available to her in retirement. Rather than rushing into an annuity, we reviewed her wider financial position, income needs, attitude to risk, and long-term objectives. After discussing the pros and cons of the available solutions, we recommended investing the pension into a suitable retirement income strategy designed to provide flexibility alongside long-term growth potential. We then arranged regular monthly withdrawals of £1,500 and have continued to review the plan with her to ensure it remains appropriate and sustainable.