Strategies for Older Age
Strategies for Older Age
Many people are now living much longer lives than ever before due to advances in healthcare, diet and our general standard of living.
Average life expectancy in the UK is now well over 80* and children born today have about a 1 in 3 chance of celebrating their 100th birthday*. Coupled with this rapid rise in life expectancy is the increase in the quality of life for many people in their latter years. In general, older people are healthier, more active and demand more from life than ever before. We think this is great news and to be welcomed but it does provide challenges for those thinking about how they will plan for their older age.
One of the biggest concerns for many people is the cost of long-term care. This covers care at home as well as residential homes. As society ages, this type of care is becoming more prevalent as many people don’t wont to become a significant burden on their family in their older age.
The cost of private long-term care can often be significant and out of reach for those who have not put financial plans in place earlier in life. Without adequate planning, many people are often faced with selling their home in order to pay for their care which can cause significant emotional strain and worry.
With proper forward planning, you can be best placed to fund any long-term care you need, whether this is through long-term care insurance, savings, pensions, releasing equity from your home or another investment vehicle. We can also help you if you have a more pressing need for a relative who needs immediate or upcoming care and help you work out how best this can best be funded. We also help our clients understand any state benefits they may be entitled to and how to maximise their entitlement. This is a rapidly changing and complex area where our expertise and often provide significant benefits.
In our experience, a major concern for many older people is ensuring their estate is properly structured. This usually means creating or updating a will to ensure assets are passed on to the beneficiaries they choose. Another important factor to consider for many people is Inheritance Tax. With house prices now far higher than a generation ago, many more people are finding their estate could be liable to tax. With careful planning, many people can significantly reduce or even eliminate the Inheritance Tax payable on their estate meaning their beneficiaries can receive more.
Many people are now also considering the cost of funerals and deciding to invest specifically to pay for this so that the cost is not borne by their relatives. Another option is to take out a ‘Funeral Plan’ which can cover these costs. This is often an emotional area for people to think about but one which, with careful thought and planning, can be taken care of, leaving you with one less thing to worry about.
Nowadays, many people also use a ‘Power of Attorney’ to ensure their financial affairs can be managed by those they trust when they no longer have the mental capacity themselves. We help our clients when the time comes to create a Power of Attorney, helping them through both the procedural and emotional aspects of this.
Finally, when a relative or loved one dies, we help our clients with probate, ensuring all necessary financial documents are efficiently administered. At this difficult time, it is important to have everything taken care of in a professional, timely manner by a company you can trust.
For many people, thinking about their latter years is tricky and not something that is necessarily at the top of their agenda. However, it is rapidly becoming one of the most important areas in financial planning as we live longer lives than ever before. With sound advice, careful planning and by taking the necessary action now, you can ensure the older age for you and your loved ones is free from financial worries and can really be enjoyed.
Some of the Questions We Can Help Address
We can help answer any questions you may have in relation to strategies for older age. Questions such as:
How can I best fund my own long-term care?
How do I structure my estate so that I minimise my inheritance tax liability?
Should I release equity in my home or downsize to fund my older age?
How do I help a family member pay for their long-term care needs?
How long should I expect to live and will I have sufficient money to last into my latter years?
Should I take out a funeral plan or what other options do I have to pay for my funeral?
Should I update my will?
What kind of state benefits might I be entitled to to help fund care in my older age?
How can I ensure I am not a burden on my family in my older age?
How do I gift money to younger members of my family?
Should I be investing now to pay for my future long-term care needs?
Should I set up a 'Power of Attorney'?
How would you cope if you needed long-term care?
Many people worry about becoming a burden on their family in their old age. We can help you put plans in place to ensure you are taken care of with the best care provided to you.
Did you know… 8% of men and 14% of women aged 65 today are projected to celebrate their 100th birthday
As a country we’re getting older – much older. There are around 14,000 centenarians in the UK today. This number has increased five-fold in the last 30 years. By 2037, this number is projected to be well over 100,000. For 8% of men and 14% of women who celebrate their 65th birthday this year, a congratulatory letter from the queen (or king) will be coming their way on their 100th birthday. Estimates for those born today show just how fast life expectancy is rising with 1 in 3 likely to live beyond 100 years of age.
Older Age Services
Long-term Care Insurance
Long-term care insurance provides the financial support you need if you have to pay for care assistance for yourself or a family member. This insurance can cover the cost of assistance for those who need help to perform the basic activities of daily life such as getting out of bed, dressing or washing in your own home or in residential care. There are different types of long-term care insurance products available and each must be considered carefully to ensure it fits with your specific needs.
State Care Provision
The provision of long term care by the state is complicated and navigating these complexities can be challenging and often stressful. We are on hand to help you arrange your financial affairs to ensure you get your maximum entitlement to state funded long term care provision for you and your family.
Inheritance Tax Planning
Inheritance Tax is often a major concern as increasing numbers of estates exceed the tax threshold. Inheritance Tax can often be reduced or eliminated through proper planning through using gifts, allowances and trusts. Effective tax planning is essential to avoid leaving a substantial tax liability at death, thereby substantially reducing the value of the estate passing on to beneficiaries.
Funeral Plans (Coming soon)
A funeral plan is a way of paying for a future funeral today. With funeral costs rising every year, many people are deciding to take care of their funeral plans and pay for their funeral in advance. The average cost of a funeral in 2004 was £1,920. By 2014 it was £3,609 and by 2034, it’s projected to be nearly £13,000. A funeral plan offers an easy way to pay for your funeral at a cost that’s fixed at current prices. These plans allow you to organise your funeral arrangements in advance, specify your wishes and take care of all the costs. Paying for a funeral plan is usually done by a upfront lump sum or a monthly payment. Whatever method you choose, you’ll know that your funeral is completely paid for and taken care of in advance.
The Key Benefits
Our strategies for older age will allow you to enjoy your latter years knowing that your financial affairs are completely in hand and under control. Here are just a few of the main benefits you will enjoy:
Know you have a great financial plan in place for your older age
Know how you will pay for long-term care should you ever need it
Get the best deal if you need to release equity from your home
Ensure you get the maximum entitlement to any care funding state benefits
Ensure financial documents are in order following a death
Minimise the Inheritance Tax your family will have to pay when you die
Ensure you are never a financial burden on your family
When you die, ensure your estate goes to the people you want
Pay for your own funeral so it's not left to your relatives
Reduce the worry about paying for your latter years and enjoy life
“ NorthStar were very helpful in guiding us through the auto enrolment process. I wouldn’t hesitate to recommend them. ”
Antony S. (Kirkby Lonsdale) | NorthStar Client