Planning for your later life

WHEN it comes to our personal finances, the final years are just as complex as everything that came before, if not more so.

- By Harvey Jones Personal Finance Editor

We need to plan how to make pension pots last, think about how we can raise money once we’re no longer working, prepare for the possibility of longterm care, and work out how to pass wealth cleanly and efficiently to the people we love.It is a big list, and a lot can go wrong if we want to avoid leaving a stressful mess behind us. One major issue is that we’re all living far longer than previous generations.

Eamonn Prendergast, chartered financial adviser at Palantir Financial Planning, says: “Living longer is a gift, but it brings real financial and lifestyle challenges.”

Retirement often lasts 30 years or more. “People frequently underestimate how long they might live, how their spending will evolve, and how much care or support they'll need.”

It also means children and grandchildren may receive inheritances later in life, in some cases delaying when they can buy homes. Alexandra Milton, partner at law firm Knights, says the earlier you start planning, the better. “Otherwise you risk making important decisions in distress, or even worse, leaving your loved ones to work things out once you are gone.”

Many are intimidated and don’t know where to start.