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Online Service update. Due to planned essential maintenance our Online Service will be unavailable between Thursday 12 December at 10:00pm until Friday 13 December at 2:00am. It will also be unavailable on Sunday 15 December between 8:00am and 6:00pm. We apologise for any inconvenience this may cause.
Later life planning
Key things to know when planning for your retirement and later life.
We want to help you prepare as much as you can for later life. Here are some key things to consider:
Pension planning
Pension rules introduced on 6 April 2015 gave pension savers unprecedented access to their funds.
If you're aged 55 and over, you're now able to draw your pension however and whenever you choose - take it all at once, or in stages, or keep it invested.
When should you start saving?
If you're able to put some money aside for your pension, then you should. Indeed, the vast majority of financial commentators do not recommend that you should rely entirely on the State to provide for your retirement. With average life expectancy increasing, the savings you make during your working life need to last much longer than ever before.
The key to achieving a good retirement is to plan as early as possible into your career by making regular contributions to a pension pot and not just put aside a lump sum every time you think you can afford it.
There are a number of pension options available to you:
The basics of Inheritance Tax
While only a small percentage of estates are large enough to incur Inheritance Tax you mustn’t forget to factor this tax into your plans when you make your Will. The rules around Inheritance Tax can be hard to understand at first, so our short summary below explains the basics of what Inheritance Tax is, how to work out what you're likely to have to pay, and gives some topline options of ways to reduce this tax.
However, we would recommend that you speak to a tax adviser or solicitor to ensure that you work out your options correctly and conform to HMRC requirements.
Long-term care planning
Many of us will have to face the challenge of ourselves or a loved one needing care, whether at home or in a residential care home. Are you worried about how this care is going to be funded? If so, we can help.
State funding
The first thing to consider is eligibility for any State funding. Currently only those with assets of £23,250 or less in England (£24,000 in Wales), are entitled to State support and this doesn’t cover the whole cost of their care.
Self-funder
If there’s no eligibility for State funding then you’ll be known as a 'self-funder'. The difference between the cost of care and the income of the self-funder is referred to as 'the shortfall'. Your key concerns will probably be:
- How do I fund the shortfall?
- How do I ensure my care needs can be met for as long as needed?
- How do we preserve as much of our assets as possible?
Owning property
A person’s home won’t be included in the financial assessment means-test if;
- A spouse or partner still lives in the house;
- A relative aged 60 or over lives in the house;
- A disabled relative lives in the house;
- A dependent child under 16 lives in the house.