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We have provided the following case study to illustrate a typical client's situation. It should be used for guidance only as not everybody is suited to the advice given in this case study.

Mr Client was 49 years old and had a preserved pension from 15y service in the Royal Navy. Mr Client wanted control of his own pension and the flexibility to take benefits when and how he chose.

At this point the Royal Navy pension was £9,100 pa with a lump sum of £27,299; the projected pension benefit at age 60 was £11,884 pa. The pension would increase with inflation and provide 50% benefits for his wife on his death – as an alternative the scheme trustees offered a transfer value of £115,455.

His Risk Profile could be summarised as balanced to adventurous!

He agreed to transfer to a Personal Pension with the intention of drawing his tax free cash of 25% of the fund value at age 50. He felt the increases offered by the Royal Navy Scheme were mild compared to the potential growth offered by the investment markets over the medium-term.

By February 2008, when he reached 50, the transfer value had grown to £136,521. It was then moved to a Pension Drawdown plan and he took tax free cash of £34,130. The remaining fund, after taking into account the charges, was £99,456, and providing an income of £6,635 pa. On 13 July 2010 the plan value was £113,006.

After adding in all income taken to date, the equivalent value is £127,584. This is a return of 28.3% over a period that the ftse 100 has dropped 10.4% and the RPI index has increased 6.2%. The fund value ignoring the income is £113,103.

•  He has a flexible income of up to £6,635 pa.
• This income is reviewed every 3y to reflect changes in age, gilt yields and fund value.
•  His pension is not halved on his death, it can be passed to his wife in its entirety.
•  It will also not disappear on his wife's death, as any remaining fund could then be passed as a legacy, albeit less 55% recovery charge.

Due to our pro-active management we have made progress against a strong headwind, and expect to further improve returns if markets come off current lows, as we expect they will.