- These investors should estimate their future expenses to get an idea of what they can afford
- They do not necessarily need high-yielding stocks for income as they could sell investments which have grown strongly
Pensions, Isas and general investment accounts invested in shares and funds, residential property, cash.
Sell buy-to-let properties, cover future care costs, continue to live in current home and cover its running costs, hold assets tax efficiently, mitigate IHT, make gifts to family if possible.
Michael and his wife are ages 74 and 72, and have two children and several grandchildren. They receive an annual income of around £80,000 a year from occupational, private and state pensions, about three-quarters of which have inflation increases built in. About 80 per cent of that income goes to Michael. He also works part time and earns about £18,000 a year, but expects to stop doing this in the next year or two. They are both higher-rate taxpayers.