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Financial planning, legal & retirement
13 FEBRUARY 2021 • THE GOOD LIFE DISTRIBUTED WITH THE SATURDAY DAILY MAIL
Power-up your pension pot S
Whether you’ve got fi ve, 10 or 15 years to go, this is how to look after your fi nances in the run-up to retirement. Words: Faye Bartle
ince the Covid-19 pandemic hit, stock markets have fallen and, according to the Money
Advice Service, are likely to remain volatile for a while. If you’re worried about the impact on your pension, maximising your retirement savings and investments now could help. Here, two experts suggest steps to consider taking, whether you’ve got time on your side or just a few years to go.
15 YEARS TO GO In this time frame, you can still cash in on your career. “Signing up to a workplace pension scheme is a no-brainer,” says Maike Currie, investment director at Fidelity International.
Signing up to a workplace pension scheme is a no-brainer
“Grab it with both hands. You can’t access it until you’re at least 55 but by then it should have grown into a nice pot.” Outside of your workplace
pension, be sure to review your risk. “Look at how your money is invested,” says Jamie Smith, a fi nancial adviser specialising in retirement at Foster Denovo. “Put aside a day each year to
review whether you’re on track. T ere are free, online calculators that can help you with this."
10 YEARS TO GO Start making small sacrifi ces: “Set up a standing order for a stocks and shares ISA each month,” says Maike. “Even a small sum will grow nicely.” Jamie agrees, adding:
“Consider any lifestyle changes you are willing to make now so that you can save more towards your retirement. Examples include cancelling any underused subscriptions or reducing how often you eat out.”
He also recommends
reviewing your pension so you can plan accordingly. “Check your forecast via the online Government Gateway to understand how much you might receive and when your state pension commences,” he says.
FIVE YEARS TO GO Consider your back up options. “Given the widespread disruption
of 2020, it will be highly prudent for those on the edge of retirement to reassess their plans and get a real sense of their current retirement savings before looking at the diff erent options available to start drawing on those savings,” says Maike. “Some may consider either working for longer to recover any retirement losses or exploring supplementary income streams.
GETTY “If you’re considering delaying
your retirement, make sure you update your pension provider about your chosen retirement age, particularly if you’re a member of its default investment option. By doing this, you’ll avoid de-risking your investments too early, and potentially missing out on any further opportunities there might be for growth.” fi
delity.co.uk fosterdenovo.com
Do I need a lasting power of attorney? Graham Hearnden, of Trust Matters Group in St Albans, warns about the dangers of not having lasting powers of attorney in place
As people are living longer, so too will there be an increase in the number of people expected to need to give a third party power over their aff airs. Lasting powers of attorney
(LPA) are legal documents that let you appoint one or more people (known as ‘attorneys’) to help you make decisions or to make decisions on your behalf in the case of loss of mental or phys- ical capacity. T is must be set up before that occurs as once you have lost capacity, it’s too late and only a deputyship is possible. It can take months to apply
for deputyship once someone is unable to look after their own aff airs, and the fees to apply can be costly. T ese can include solicitor fees to apply for depu- tyship, an assessment from a GP and fees to apply to the Court of Protection (£365). In some cases, you must also take out a bond to insure against misuse of funds, which must be paid for annually. T ere’s also an annual ‘supervi- sion fee’ to the Offi ce of the Public Guardian (£320 per annum and, in the fi rst year, an extra £100 assessment fee).
T e person authorised by the
Court of Protection to handle your aff airs on your behalf is not only unlikely to be who you would have chosen, but may even be a court offi cial — who can charge every time he/she acts for you. By contrast, once an LPA has
been granted, it doesn’t need to be renewed. T e LPA rules, intro- duced in 2007, have enhanced the protection off ered and ensure people are of sound mind when they set it up. T ose with dementia are
particularly vulnerable to the theft or illegal use of their prop- erty, money or other valuables. T ose without an LPA are power- less to intervene. T e delay involved in obtaining
deputyship could also cause serious harm as fi nances are left inaccessible for several months. It’s also not a solution for those needing help in managing their aff airs to give PINs or bank details to their children, as this could jeopardise the parents’ ability to recover losses if
account is hacked with no LPA in place.
• Inheritance Tax Planning • Wills • Family Trusts • Tax effi cient investments • Probate guidance • Funeral planning • Lasting powers of attorney
T ere are two types of lasting
power of attorney: property and fi nancial aff airs; and health and welfare. It’s important to note that existing enduring powers of attorney are still valid, but they only cover property and fi nancial aff airs. Trust Matters is able to deal
the
with all the legal requirements surrounding the drafting of an LPA, including preparing your documents, liaising with the Offi ce of the Public Guardian and registering your documents.
Get in touch for a free information pack. T: 01727 737 610 E:
info@trustmatters.co.uk
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