Here’s a bold statement: retiring in style doesn’t have to mean leaving your kids with nothing. But how do you balance living your dream life now with securing a legacy for the future? That’s the question Mark Griffiths and his wife, Delwyn, are grappling with as they plan their retirement. And this is the part most people miss: it’s not just about saving—it’s about strategizing for both today’s adventures and tomorrow’s inheritance.
Mark, now 66, has always had a way with numbers. Growing up on a South Wales council estate, he knew early on that his knack for mathematics could be his ticket to a better life. While training as a tradesman, he had an epiphany: ‘Do I really want to work with tools for the rest of my life?’ The answer was a resounding no. Instead, he pivoted, enrolling in a local college to unlock his potential. That decision paid off big time. His career as a mechanical engineer took him around the globe, specializing in semiconductors during the tech boom. From building microchip factories in Saudi Arabia to China and Mexico, Mark’s expertise was in high demand. Along the way, Delwyn was his rock, supporting his career and raising their three children, now adults.
Now, with Delwyn turning 66 this year, the couple is ready to ‘live a bit.’ Their retirement dream? A round-the-world trip, starting in South America, where Mark is eager to visit Y Wladfa, a vibrant Welsh community in Argentina. But here’s where it gets controversial: their children have given them the green light to spend what might have been their inheritance. ‘They told us to go and spend it,’ Mark says. But the couple isn’t just splurging—they’re planning to maintain their lifestyle post-travel, with an annual income of around £40,000 from pensions, rental properties, and state benefits.
Their financial portfolio is impressive: a £250,000 pension pot, two buy-to-let properties bringing in £1,750 monthly, a holiday cottage in Pembrokeshire earning £6,000 to £9,000 annually, and a small defined benefit pension worth £5,500 a year. They also have a cash ISA with £40,000 and plan to downsize their £600,000 home, investing the £150,000 difference into their pension to fund their travels. But here’s the kicker: with an estate valued at £1.19 million, inheritance tax looms large. From 2027, pension contributions may be included in the taxable estate, potentially raising their inheritance tax bill to £176,000.
Financial experts suggest solutions like lifetime gifting of properties or using insurance to cover the tax liability. But gifting comes with complexities—capital gains tax, loss of income, and family dynamics. Alternatively, a whole-of-life insurance policy written in trust could cover the tax bill without dipping into their estate. And this is the part most people miss: careful planning can preserve both your retirement dreams and your legacy.
So, here’s a thought-provoking question: If you could retire today, would you prioritize living your dream life now or securing a larger inheritance for your children? Let’s discuss—do you think Mark and Delwyn are making the right choices, or is there a better way to balance the two?
