Simonne Gnessen, founder and director of Wise Monkey Financial Coaching, reflects on her personal pension journey and the lessons learned from decades of navigating retirement savings. Now 60 and based in Brighton, Gnessen has spent much of her career helping others understand personal finance, while also grappling with her own retirement planning decisions.
After studying statistics at university, Gnessen began her career as an actuary, working in pension consultancy for more than eight years. During this time, she was part of a final salary pension scheme—also known as a defined benefit pension—where contributions were made by both her and her employer. However, following a shift to self-employment and a subsequent career break for extended travel, Gnessen transferred her final salary pension to a private pension fund, a decision she later came to regret.
Her reflections highlight the complexities involved in transferring defined benefit pensions. Gnessen undertook calculations to compare potential investment returns against the guaranteed income she would have received, factoring in assumptions such as inflation and life expectancy. Despite an actuarial background, she found that shifting to a defined contribution plan did not yield the expected gains, particularly due to ill-timed investments during the 2008-2009 market downturn and limited capital availability as a self-employed individual building her practice.
The original pension she transferred, valued at about £50,000, might have grown to approximately £250,000 had she retained it, providing an estimated annual income of £6,000 from age 60. This realization weighed heavily on her for years, but Gnessen eventually chose to focus on rebuilding her retirement savings through consistent contributions. Over the past decade, she has increased her monthly pension payments to £1,400 and supplements these with lump sums and investments through a stocks and shares ISA. Currently, her Self-Invested Personal Pension (SIPP) holds £325,000, alongside £185,000 in ISAs.
Gnessen’s personal motivations for financial security are deeply rooted. She lost her mother at age 21, which fueled her determination to make the most of life and establish a stable future. Her commitment to meaningful work led her, in 2002, to launch the UK’s first financial coaching practice aimed at demystifying finance for those outside the high-net-worth bracket. Now 24 years into that venture, she continues to coach clients and mentor new financial coaches.
Her personal life has presented new challenges. Her partner, who retired early from the NHS due to long Covid, is mostly housebound, prompting Gnessen to reevaluate priorities and appreciate stability where possible. Despite these challenges, she intends to work beyond the state pension age of 67, driven by passion and a desire to contribute.
Gnessen’s story underscores both the emotional and practical complexities surrounding pension planning, particularly the risks involved in transferring defined benefit schemes into private investments. It also highlights the evolving landscape of financial advice and the growing role of coaching in guiding individuals toward better retirement outcomes.