From an interview with ex-FCA regulator, Rory Percival
Most people seek peace of mind in retirement.
This can be delivered in a number of ways, but one of the most significant is to feel financially secure. In my interview with Rory Percival, ex-FCA regulator, in episode 019 of The Retirement Café Podcast, we explore the concept of a core secure income.
Rory explains that for him, knowing that he will be financially secure throughout retirement was achieved by securitising the income he would need in his later years. With an expected lifespan into his 90’s, Rory will require quite a significant amount of money to fund his lifestyle. He has spent time with a financial planner working out what his expenditure is likely to be during the different stages of retirement and is planning how to meet those needs.
A core secure income is one that is guaranteed. This therefore includes income from defined benefit (DB) or final salary plans (which provide a guaranteed income for life), State Pensions and income from rental properties. This can also include annuities and guaranteed third-way products. Rory has established that his and his wife’s expenditure needs in their later years – when they expect to be spending less on travel and the likes, but will possibly need to cover care costs – can be met by their DB plans, State Pensions and rental income. He therefore feels more confident in spending other drawdown pensions and ISA savings in the earlier years.
If you transfer your DB pension into a drawdown plan, this can bring additional risk to your retirement income planning.
This brings a huge amount of peace of mind to Rory and enables him to work through all the plans he’s noted in his ‘little black book’ with confidence. You can listen to Rory’s interview on The Retirement Café Podcast from 19th March 2019.
About Rory Percival
For ten years, Rory Percival was ‘the face of the Financial Conduct Authority’ (FCA) for financial advisers. An influential speaker and thought-leader, Rory’s technical expertise enabled him to play a significant role in setting the agenda for regulatory activity in the advice sector.
The projects he was involved in included pension switching, the Retail Distribution Review and pension freedoms.
In 2016, after an impressive 30 years in the financial advice sector, Rory Percival set up his own training and consultancy firm offering conference speaking, training, guides and consultancy.