|
Goals and objectives of the retired and elderly are different from other age groups and
therefore attract specialist planners. We have chosen to devote this page to the
expertise gained in meeting the needs of this age grouping.
There are two planning certainties in life "death and taxes".
Planning for retirement starts when earnings commence. The power of compounding ensures
small contributions early in life avoid the large contributions that are often necessary
in the pre-retirement years. Once retirement is reached it is often too late to plan
effectively for later years.
At retirement it is important to establish and maintain financial independence on what
becomes a more fixed income and lifestyle. The enemy of all retirees is inflation
and the maintenance of spending power, given limited financial resources.
The fortunate few are retiring earlier and generally we are all living longer, due
to the wonders of medical science. The planning cycle is extending, posing a dilemma
for the planner. It is now possible for retirement as early as 50 years, after a
working life of 30 years, followed by 30 years of retirement. Early years of
retirement are active, given good health, ending with years of slowing activity
and finally residential/nursing care. Such needs must be planned to the wishes of
the individual. It has been said that success in personal retirement planning may
be measured by a timely death owing the funeral directors burial fee!
Some goals, objectives, wishes our retired and elderly clients have identified are;
- to meet retirement with growing grace, confidence and respect
- to leave the family home to the children
- to maintain spending power of income in retirement
- to avoid inheritance taxes on the death estate, to travel the world for 10 years,
then to retire to a cottage in Devon
- not to be a burden to our children in old age
- to maximise wealth passed down the family
- to maintain dignity and independence in old age
- to leave £100,000 to charity
- not to leave a penny to the children
- to spend capital as income over 10 years then a rising (with inflation) income of
£15,000 from 70 years for our lifetime
- to provide fully the needs of the surviving spouse
- invest £6,000 for my newly born grandchild
The elderly, as opposed to early retirees, require specialist planning of
finances to meet the needs of Long Term Care (LTC). Experience indicates that
more than 25% of retirees will need LTC at some time. The number of elderly
people in the population is rising and financial pressure on the Welfare State
increasing. At the same time families are becoming more dispersed and fewer children
are able or wish to take on the responsibility of caring for aged parents.
We recognise the specialist planning needed and are fully trained to code of
standards set by our membership of IFACare - an organisation devoted to expertise
in LTC. Website link www.ifacare.co.uk . It is important to recognise that
there is no regulation of LTC products and no qualification to sell them.
Anyone can call themselves an expert with little to no training/knowledge. |
