Client story: Making the retirement dream a reality

Matt, a Partner at St. James’s Place, has been advising Billy* on his pension and financial planning for the future since 2016. When he first made contact with Matt, Billy was nearly 50 and wasn’t thinking much about retirement. He’d recently married for the second time and was financially supporting his two children from his first marriage, as well as contributing to two mortgages. As he puts it, “I was just living month to month, without considering the future.”

The first thing Matt did was sit down with Billy to get to know him and understand what was important to him now, as well as what he’d like from life in the years and decades ahead. Expert financial advice will always prioritise needs over wants, and Matt discussed both with his client. He learnt that Billy’s family was a high priority for him – as was the dream of owning a home abroad.

However, Billy had initially been hesitant about seeking advice, since he works for an investment bank, and friends had told him he should already know enough about financial matters to make decisions and arrangements without support.

“But you don’t know everything,” he says. “You can’t. There are so many choices and options, and there’s so much negative coverage in the press about pensions and so on that it can feel quite daunting.”

But Billy is pleased he took the time to take stock of his situation. “The best thing you can do is to confront it and not ignore it,” he says. “I would say: think about what you want. Think about your ambitions and your plans for the future, take ownership of your situation and speak to people like Matt, who care about helping you achieve your goals.”

Balancing risks and rewards

Matt also made a careful assessment of Billy’s attitude to risk – and helped him understand his own feelings about taking on extra risk in search of potentially bigger rewards. “In our first discussions, we talked about what my investment portfolio would be made up of,” says Billy. “Would I be cautious, or would I be more cavalier? Or somewhere in between?”

Matt worked out that Billy was prepared to take a relatively adventurous approach to investing, while also bearing in mind that a certain level of caution was required because of his age.

Having established this, Matt was able to draw up a plan for Billy that would suit his current circumstances and give him, in his view, the best possible chance of being able to fulfil his long-term ambitions.

For both Billy and Matt, the technical details of creating and executing this plan were simple to work through. “The implementation should be the shortest part of the process,” says Matt. “The longest part was getting to know Billy and his wife, understanding what their goals are for the future, and then designing the most efficient way to get there.”

Billy believes that opening up to his financial adviser really helped. “At the beginning, it was quite an emotionally challenging thing, because Matt really understood my situation and my journey in life. It was all about me – my interests, concerns and plans.”

Because Matt did this, though, a lot of “confidence and trust” – as Billy describes it – has been built up between the two. “We have a really great rapport and relationship,” he says.

And so far, Billy has been delighted with the work Matt has done on his behalf and the growth of his investments. “My portfolio has been a tremendous performer,” he says. “It’s given us options that I never thought I would have.”

So, for example, that dream home abroad is now a realistic prospect rather than “a romantic notion”, as is the possibility of retiring earlier than envisaged, which is now a bigger priority for Billy following a change of outlook in the wake of the COVID-19 pandemic.

Building confidence and trust

What’s more, Matt stays in regular contact with Billy, and conducts cashflow reviews and identifies tax-saving opportunities, as well as checking whether his situation and goals have changed, thus requiring an adjustment of his plan. “He’ll ask: ‘Are we still on the right path to achieve the endgame?’” says Billy.

“It’s like you’re taking back a bit more control of your future, and you can cut your cloth accordingly, with a projected view of how things might play out.”

Trust grew even stronger for Billy when Matt suggested it wasn’t in his best interests to transfer his current company pension to a St. James’s Place scheme. This highlighted the fact that a good adviser will only recommend change that genuinely benefits the client. “That sort of approach – if it isn’t broken, don’t fix it – gives you a sense of comfort and confidence, which is crucial,” says Billy.

All in all, Billy is delighted that he sought expert advice from a St. James’s Place Partner. “Matt is incredibly diligent and attentive and stays with you through it all,” he says. “It’s great to have someone set out in such a clear and concise way what opportunities exist – everything is packaged up and explained. You may pay a little extra, but you pay for quality, personality and a good relationship, and that’s so important.”

In fact, Billy has been so pleased, he’s been referring his friends to Matt, too. “They all have the same opinion as me about the quality of service, and feeling totally comfortable and confident, trusting in everything that Matt proposes,” he says. “It’s been a great story for me – a truly transformative experience.”

Looking for a trusted adviser to help you achieve your long-term goals? Talk to a St. James’s Place Partner today.

*At his request, the client’s name has been changed in order to protect his identity.

This is just one client’s story and each situation is unique. The advice provided to Billy was given after a full evaluation of his specific needs, circumstances and requirements. Always seek professional financial advice before making any decisions.

Past performance is not indicative of future performance.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief generally depends on individual circumstances.