Cash flow planning – your road map for the future

20th May 2018

Many people spend their working lives planning and saving for their later years. However, when they reach retirement they can be unsure as to how best to allocate their cash. This is where cash flow planning can really help.



A cash flow forecast will give you a clear picture of what your future income and capital needs are likely to be. It can help you take the right decisions about timing your retirement, like calculating your likely income depending on whether you choose to retire early or late.

At retirement, it’s not unusual for people to find themselves holding large amounts of cash, especially if they have chosen to take a tax-free lump sum from the pension pot. This is often a short-term measure before they buy a property or make investments.

A cash flow forecast can help you decide how much you have available to invest. It can also help you see what the effects of inflation might be, and what income you’ll be able to take at different rates of investment return.



A cash flow forecast is not a once-andfor- all exercise; it’s a living document that should be regularly revisited to ensure that it reflects your changing situation. It can help you take a range of lifestyle planning decisions, for instance whether it would be financially beneficial to downsize at retirement, or help you assess when and how much money you can afford to pass on to your family.

It can have a valuable role to play in tax planning, enabling you to put in place plans to reduce the Inheritance Tax that might otherwise be payable on your estate when you die. Mapping out your future cash flow also means you’re better able to plan for later life expenditure like the cost of residential or nursing care. We can help you assess your cash flow needs and make the right decisions for your wealth.

The above is purely for information purposes only and does not constitute advice.