With life expectancy at an all-time high, a larger proportion of the older generation are living long into their twilight years. Consequently, their finances now have to stretch further, so there is a greater emphasis on later life planning to ensure they are financially comfortable for the rest of their lives.
When reaching retirement, your pension – both government and personal – often becomes your main source of income, so when planning for later life it’s a good idea to review your current pension choices. Think about how and when you will access them; you don’t have to start drawing your pension as soon as you reach retirement age, but when the time comes, consider whether to receive your pension in monthly installments, withdraw it in chunks, or as one lump sum.
Another consideration is how you’d manage if your health were to fail, and where the financial burden would lie. Putting aside funds for this purpose and detailing your wishes in your plan for later life could relieve some of the pressure on your family.
Planning for later life also means writing a Will detailing how you would like your estate to be shared amongst your loved ones. Your Will removes any ambiguity over such matters and gives you peace of mind that your wishes will be followed. You may also want to appoint a Power of Attorney while you’re still fit and healthy. This will ensure somebody you know and trust is in control, and protects your home and money should you become unable to make decisions regarding your care and financial affairs.
You should also consider investing in a prepaid funeral plan as a secure way of financing your funeral. It allows you to lock in the funeral director’s services at today’s prices, and protects against future inflation by fixing the cost of most elements of your funeral. It also allows you to arrange the entire service in advance, giving you – and your family – peace of mind, knowing that you will get the send-off you deserve.
Life insurance, especially over 50s life insurance, is advertised as an alternative means of providing financial assistance to your dependents when you die. Customers pay a fixed monthly amount for the rest of their lives, and their beneficiaries receive a lump sum on their passing.
However, while often more affordable than a funeral plan, life insurance policies don’t always pay out enough to cover the total cost of the funeral, and because you pay a fixed amount each month, you could pay in more than you get out, especially if you live a long time.
It’s never too early to start planning for later life, and making important decisions, such as what would happen if your health were to fail, or what form your funeral might take. This planning could help to remove some of the emotional and financial burden from your family. Eliminating such pressure could be one of the last, and greatest, gifts you give your family.