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Moores’ tours

Aviva Life and Pensions at retirement manager Dominic Fraser Smith explains how the firm helped a retired couple fulfil their travel dreams

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Lecturers Natasha and Alexander Moore, both 70, are finally withdrawing from full-time academic life in order to pursue their interest in travel, exotic cultures and their large far-flung family. This has seen their income drop and they are now more reliant on the state pension as well as their public sector pension.

They have managed their money carefully over the years, are debt-free and own a well-maintained property on the outskirts of Manch-ester.

Recently, their neighbours took equity release to increase their income and the Moores have been considering this option.

After much discussion and some online research, they chose Aviva. Alexander found a phone number on Aviva’s website, which he called. The operator took down his details and booked an appointment for a specialist tied adviser to visit them in their home.

In preparation for the meeting, the Moores had gathered a selection of information that included:

  • A recent bank statement
  • A rough estimate of the value of their home
  • Details of their pensions and other regular income
  • An approximate valuation of any savings or investments
  • Life insurance details
  • Their solicitor’s details

The day of the meeting arrived and the Moores debated what the interview might involve. They both find it difficult to discuss finances with strangers due to the mores of their generation.

Alice, their Aviva adviser, arrived and put them both at ease by explaining that many people had these concerns. She started off by explaining that she could only give advice on products sold by Aviva and that they could – at any time – choose to terminate the discussion or go to an independent financial adviser.

Alice then talked them through their finances and quickly ascertained that their finances would cover comfortable living but not the exciting travel plans they would like to pursue.

She also questioned them closely about the types of benefits they received to determine how equity release might impact on them.

Currently, the Moores received a minimal amount of state assistance and are unlikely to be eligible for additional benefits. They are also asked how much money they would like to release from their home and they tentatively said £75,000.

Alice carefully took note of all the details and arranged a follow-up appointment after she had the opportunity to consider their financial circumstances and objectives, attitude to moving house and leaving an inheritance.

Several weeks later, Alice was sitting on the Moores’ sofa again. She suggested they take out a lifetime mortgage with Aviva whereby they are able to borrow up to 35 per cent of their property value, which they have estimated to be £285,000.

This means they will be able to receive up to £99,750 in return. It was explained that this type of plan was best for them due to a variety of factors that included their age, their stance on inheri-tance and the sum they wished to release.

They chose to visit Petra (above), Angkor Wat and are currently researching the costs of visiting the Bagan Temple in Myanmar

Both Natasha and Alexander were surprised by the amount of money they could release and both began talking about the places they had always wanted to visit. Before leaving, Alice suggested that they take time to digest this and talk it through with their families.

Both of the Moores’ sons lived in South Africa so after several long-distance phone calls, their family said they simply wanted their parents to enjoy their retirement. Bright and early the next day, Alexander phoned Alice to put the wheels in motion and he arranged to complete the application form.

Aviva organised for an independent valuation of their home and in seven days received the final details of the plan from Aviva.

After carefully reviewing this, they met up with Mr Chance, their family soli-citor, who was able to take them through all the legal paperwork and organise for them to sign it.

Once Aviva received this documentation, they paid the Moores via Mr Chance and they were able to decide how they might spend the money they had released. They chose to visit Petra, Angkor Wat and are currently researching the costs of visiting the Bagan Temple in Myanmar.

They chose to visit Petra (above), Angkor Wat and are currently researching the costs of visiting the Bagan Temple in Myanmar

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