Later Life Planning
It is great news that we are all living longer and enjoying greater health later in life, but longevity has implications on your financial planning.
We all need to ensure our savings, whether pensions or other investments, endure throughout our working life and then beyond, when its time to slow down and enjoy ourselves in retirement.
At CWM, we can provide tailored financial advice based on your individual needs and circumstances. We can help you explore ways to meet your retirement income objectives and consider appropriate strategies for your capital.
Perhaps you are motivated to reduce your liability to inheritance tax or want to investigate the benefits of accessing some of the equity in your home, possibly to spend on your own wellbeing, long-term care or to pass a legacy to your beneficiaries whilst still alive.
We often work with attorneys and trustees acting on behalf of someone else. Our role is to help manage the trust assets, keep the legal representatives informed of the available options, and assist in implementing an appropriate financial plan for the beneficiary.
Economic anxieties in later life can span many different facets of financial planning, and we can assess and advise on all aspects, including:
- Investment Planning
- Pension Plans
- Estate (Inheritance Tax) Planning
- Trusts & Investment Planning. The FCA do not regulate Trust advice
- Equity Release Options
Potential Challenges
As part of our guidance, we seek to support our clients’ understanding of the challenges that can arise in the future. Inflation is often the core threat to those with fixed income arrangements, particularly during later life.
To illustrate the effect: with no investment return at all, inflation of 2% a year would erode around a third of the spending power of your savings over a 20-year term. At 3% a year, that erosion rises to around 45%. These figures are simple illustrations of how inflation compounds over time – they are not forecasts, and the actual rate of inflation will vary.
This becomes a pressing issue when many people reaching age 65 can now expect to spend two decades or more in retirement, and inflation has at times run well above the Bank of England’s 2% target. The management of funds in later life therefore becomes a vital component of what we do for our clients.
The good news is we can help you explore the planning opportunities and tax considerations that may be available based on your individual circumstances.
We look forward to assisting with your own or a family member’s later life needs and financial planning.