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Brookes, financial planner at Charles
Stanley, points out: “Our clients who
are 85 and older have had final salary
pension schemes and a decent state
pension. As such, they’ve generally
had high levels of income and plenty
of money to accumulate savings.”
Future generations have time on
their side and so these difficulties
are, in theory, easier to resolve:
Parents can start pensions for their
children, putting in £3,600 a year. The
compounding effect of these early
contributions can be profound. If you
start when they are born, they could
have more than £1m by the time they
are 55. Leave them to start a pension
when they get a job at 21, however,
and that pot drops to £166,400
(assuming the same contributions
and annual growth of 5 per cent).
Longevity is not always
welcome from a financial
point of view as it means
pensions must last for
longer and there is a greater
likelihood of expensive
long-term care
New tricks
The next generation can also plan
their careers in preparation for a
longer working life. Generations
expert Dr Eliza Filby has spoken of
the “multi-stage life”, meaning rather
than having a specific career and a
definitive retirement date, they may
have multiple careers, periodically
returning to education to retrain.
THE IMPORTANCE OF LASTING POWER OF ATTORNEY
This is a formal in place brings significant short-term stay in hospital,
arrangement that allows complexity – relatives have allowing someone to make
someone to act on an to apply to a court to be sure bills are paid. Ingram
individual’s behalf if they are appointed as a deputy. says: “My oldest client is
no longer able to manage This can be an expensive 96 and still hale and hearty.
their own affairs. There are process and the court may As clients age they need
two types: health & welfare not appoint the “right” more help in managing their
and property & financial person. affairs and working with
affairs. They can only be
The use of a lasting power
other family members is
made while the individual of attorney doesn’t have to important so that if capacity
has the mental capacity be permanent. For example, is lost, a trusted person can
to do so. Not having one it may be used to cover a take over.”
FE TRUSTNET
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THE JAPANESE TEAM
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Long-term investment partners
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Conduct Authority.