Adrian Walker
AUTHOR Adrian Walker| CREATED 04 Jun 2015

The portfolio careerist

For people like Philip Hallworth, retirement doesn’t mean an end to work but the freedom to pick and choose which jobs to take on, while exploring other interests. We outline the key things to consider if you want a Life2 with the same flexibility.

The Portfolio Careerist is someone who isn’t quite ready to give up work but who wants more freedom over how they spend their time. It’s this category of retiree who, arguably, is doing more to redefine the concept of retirement than any other.

‘What I love about my new life is that there’s no routine to it,’ says Philip Hallworth, the subject of our video. He keeps himself very busy running a consultancy business, doing voluntary work and putting on productions with an amateur dramatics society. Yet he also has the flexibility ‘to say yes to opportunities when they arise.’

From a financial perspective, Philip knows he has to keep an eye on his essential outgoings – especially as he’s still paying off a mortgage and has a daughter who needs his help from time to time. But with the help of a financial adviser he’s been able to make the most of his various sources of income.

What to consider if this Life2 looks right for you

If you think Philip’s Life2 might suit you, it’s worth bearing in mind that the new pension rules  will make it easier than ever to get flexible access to your retirement savings. The chances are, however, that his financial arrangements will be very different from yours. Like a portfolio career, a retirement strategy needs to be tailored to individual circumstances, needs and goals.

One of the key things to consider is how much you’ll be earning if you continue to work. If your income from this work is enough to meet your everyday needs then you may wish to defer taking money from your pension or Individual Savings Accounts (ISAs), in order to give your money the chance to grow further in a tax-efficient environment. It’s also possible to defer the date that you start taking the State Pension, ensuring that you get a larger pay-out later on.

Alternatively, you may wish to start drawing some of your pension initially, topping this up with income from your work. Flexibility is one of the major benefits of the new pension rules – from 6 April 2015, you’ll be able to take cash out of a defined contribution pension whenever you need it (depending on your provider).

However, the more complex your Life2 is going to be, the more it makes sense to consult a financial adviser about how to take advantage of all these new possibilities, without paying more tax than necessary. If you don’t yet have a financial adviser but are interested in finding one, you can do so using the free search tool here.

Adrian Walker

Retirement Planning Manager Old Mutual Wealth

Adrian has worked within the Skandia and Old Mutual Wealth organisations for over 25 years. He has had several roles covering the technical aspects of pension savings and identifying opportunities for customers and their advisers. That includes financial planning for people already with pension savings and those considering using a pension scheme to build savings for later life. Adrian is well known in the financial industry for his expertise and is a regular press spokesperson for Old Mutual Wealth, working with both the press to highlight issues arising from the continuing changes to the pension landscape, particularly with regard to longer term retirement income needs of consumers.