Plan now,Not later on in Life,
Written by Elissa Hayes 25/08/2014
Are you fully prepared for retirement, Have you thought about what could happen?
You need to plan now, not later in life, new stats below show.
Do you have anything in place to make sure those closest to you are looked after later on in life?
In May 2012, the BBC reported that of the 29 million people employed within the private sector, only 3.2 million of those employees contributed to a workplace pension.
The same report also stated that the number of individuals making use of company pension schemes has halved since 1991.
Thanks to modern lifestyles and advances in medicine, we are all living alot longer and a lot of those approaching middle age today may live until 100 or beyond, though it‘s highly likely many of us can expect to continue working until we are 70 or older, we may also need to fund retirement for up to 30 years or more.
These stark figures really do put things in to perspective. Many of us have invested in our homes to help provide for our families and ourselves when we get older. However, it is also an unfortunate truth that many of those in retirement and late life have had to sell their properties in order to fund appropriate care, significantly impacting inheritance potential.
With the increasing pressure on state pensions, getting the right financial advice and making appropriate savings arrangements as early as possible has never been more important. Make sure you are clear about the best way to deal with all of your assets and how you might provide for those close to you particularly during late retirement.
Statistics have also revealed that almost 70 per cent of people in the UK die without a will. Not only can this leave families with a great deal more distress during bereavement, but crucially, beneficiaries of an estate may not receive their intended inheritance as it is dealt with by the state (intestacy). Understanding the probate system and having an up-to-date will is critical for all adults, regardless of the value of assets.
What is probate? This is the term used to describe the administration of an estate following death. A Grant of Probate will be issued, providing one or more people with the authority to deal with an estate.
Late in retirement and as we get older, we become less capable of looking after ourselves.
While this may seem a long way off for many, it is a very real situation and must be prepared for. An enduring power of attorney or other arrangements may need to be put in place to ensure adequate care and security can be provided.
It is important that close family members are fully aware of intentions and agree respective roles and responsibilities, often in relation to parents and when and how care should be provided.