Helping a business owner prepare for retirement and succession

Adviser: Peter Rose APFS, Chartered Financial Planner & Pensions Specialist · Business owner financial planning, pension strategy, estate planning · All client details have been anonymised.

Situation

The client was a business owner in his early sixties who had built a successful professional services firm over three decades. A sale to a trade buyer was anticipated within three to five years. He came to Aetas Wealth through a referral from his accountant with a simple concern: he had no personal financial plan. His wealth was almost entirely tied up in the business, with a small self-invested personal pension that had not been reviewed in years, some cash savings and the family home.

Challenge

The business was the dominant asset, but the timeline and likely proceeds from a sale were uncertain. The client wanted to retire comfortably but had no clear view of how much he needed or whether his current position would support that. His pension was underutilised. With an estate that would grow substantially on a successful exit, inheritance tax had not been considered at all. The Finance Act 2026 added a further dimension: with pension funds due to come within the scope of inheritance tax from April 2027, the role of his pension in estate planning needed to be reassessed.

Approach

Peter Rose began by building a cash flow model, bringing together the client's existing assets, the anticipated business proceeds under different sale scenarios and modelled income needs in retirement. The work then focused on three areas.

First, pension funding. The client had unused annual allowance from previous years. Using carry forward rules, Peter worked with the accountant to structure a programme of employer pension contributions from the business in the years before the anticipated sale.

Second, estate planning review. The client's estate, including the expected sale proceeds, would be well above the IHT threshold. Peter worked alongside a private client solicitor to review the Will, consider the use of trusts for the sale proceeds and map out a structured gifting programme. The pension's role in the estate was reviewed in light of the April 2027 changes.

Third, post-sale investment planning. With retirement income modelled and the estate structure mapped, the team put in place a clear investment plan for the liquid wealth following the sale: structured across income drawdown, cash reserves and longer-term growth assets.

Outcome

By the time the business sale completed, the client had a clear financial plan in place. His pension had been funded significantly more than would otherwise have been the case. His estate had been reviewed and restructured. He had a clear and sustainable income from his invested assets, supported by cash flow modelling that showed his finances holding up through different longevity and market scenarios.

This case study is anonymised. Names and identifying information have been changed. It is intended to illustrate how financial planning can help and does not constitute advice for your own situation. Aetas Wealth is a trading style of Insight Financial Associates Limited, authorised and regulated by the Financial Conduct Authority (FRN 458421). Companies House 05054886. The value of investments can fall as well as rise. The FCA does not regulate Wills, Trusts or Tax advice.