Later-life financial crisis threatens retirees
At Cotswold Independent Financial Services, we are increasingly working with individuals on setting up a Lasting Power of Attorney, which is particularly important when planning into later life.
We recently read research from Zurich that showed “79% of retirees drawing down their pension pot have not yet set up a Lasting Power of Attorney. Without the vital legal document, families could be locked out of a loved one’s finances should they become too ill to manage their affairs, leaving them facing a lengthy court process before they can step-in to help.”
The report continues that “More than 1.7million retirees could be affected by 2025 at a time when the Alzheimer’s Society estimates more than a million Britons will be living with dementia.” “More than 345,000 retirees using income drawdown to fund their retirement have not yet given a family member or friend the legal authority to make decisions on their behalf if they no longer can. The financial planning blind spot could prevent an individual trusted by the retiree from immediately stepping in to help them manage their affairs should they suddenly fall ill or lose mental capacity. Without an LPA in place, even next-of-kin would be forced to apply to the Courts to take charge of a relative’s finances.” Read more. If this is an issue which affects you, please get in touch so we can work with you to get a Lasting Power of Attorney in place.