Tips For Managing Money in Later Life
14/04/2023
Managing our finances is important at every stage of life but becomes even more so as we get older.
Typically, as people age, we retire from the workforce, which means we no longer have the same earning capacity we did when we were younger. At this stage, it is vital that the money we have is working as hard as possible to give us the freedom and peace of mind we need.
There are several things that everyone can do to stay on top of their finances in retirement.
1. Making a Will.
A Will is one of the most important financial documents that anyone can make – regardless of their age. It is a legal document that ensures you leave your money and possessions to the people you want to benefit from them.
Writing a will is pretty straightforward, but it can help to bear a few things in mind before drawing one up:
- Understand your estate. It can be helpful to have a clear understanding of any debts you may have and any assets (savings, pensions, property, life insurance policies, investments and any other physical belongings) that belong to you.
- Decide on your beneficiaries. For many, the main benefit of will writing is deciding who gets what when you’re gone.
- Consider getting legal help. A solicitor will be able to guide you through the process of making a Will and make sure it is done properly.
- Appoint an executor. An executor’s role is to make sure your wishes are carried out as you intended. It is usually someone close to you, though a solicitor may also be able to help.
- Have your will witnessed and signed. For a Will to be legally binding, it must be signed and formally witnessed by two adults over the age of 18.
Once you’ve made a Will, it’s wise to leave it with your bank, a registry office, a specialised will storage company, or the solicitor who helped you write it.
To speak to a solicitor today about writing your Will, please get in touch with Russell & Russell by filling in this contact form.
2. Making a Lasting Power of Attorney (LPA).
An LPA is a document that allows someone to make decisions for you if you’re no longer able to. It covers decisions about your financial affairs or your health and care. It comes into effect if you lose mental capacity or no longer want to make decisions for yourself.
LPAs replaced Enduring Powers of Attorney (EPAs) in 2007. However, any EPAs created before this date are still valid and can still be used, but it is worth reviewing them to ensure they are up to date.
An Ordinary Power of Attorney can also be used in some instances. This covers decisions about your financial affairs and can be used temporarily, for example, if you are in hospital and need help paying your bills.
3. Understand what benefits you can get.
Being over the State Pension age (currently 66) means you’re entitled to a number of benefits. These include Attendance Allowance, Pension Credit, Council Tax Reduction and other Senior Citizen Discounts.
4.. Setting goals.
Having goals is also a good way to make your money stretch further and last longer.
5. Getting life insurance.
Having life insurance helps to protect the people you care about when you’re gone and makes it easier for them to manage expenses like funeral costs.
Lasting Power of Attorney Solicitor
At Russell & Russell, our wills and probate department are highly experienced in providing support to people, including those of retirement age or older, in organising their affairs and introducing a lasting power of attorney.
To speak to our friendly solicitors today, please call 0800 103 2600.