Financial Planning in Later Life
Regardless of age, many of us worry about money, but older people in particular may find they need extra help organising their finances. Conditions such as dementia can impact their ability to make informed choices while a physical disability or visual impairment may cause problems dealing with the bank or getting online. Perhaps their spouse is no longer there to help handle the finances and they find it difficult to know if they are making the right financial decisions for themselves. And of course, there is an increased vulnerability to fraudsters.
Older people still have plenty to think about when it comes to finance, however: health care, pension, insurance, bills and of course home care. People are living longer and it is more important than ever to manage our finances as we head into later life and old age, so that we remain as financially comfortable as possible and free of worry. After all, many elderly people have worked hard all their lives and want to try and enjoy retirement without constantly fretting.
Nearly 80% of older people will need some sort of care by the time they reach 80. Working out how to put money aside for care in the future is complex and can be a daunting task, and for many elderly people, staying independent in their own homes for as long as possible is at the heart of making informed financial choices.
Not everyone has the know-how to manage their money and at times, it can feel overwhelming. Here are a few sensible tips on managing money in older age, whether for yourself or for an elderly relative or friend:
- Create a budget and plan ahead. Your retirement fund may not be as high as the income you’ve been used to, so adjusting your budget is essential. Don’t rely solely on your pension in older age – if you’re confident with financial markets, think of ways to generate income by investing in property and stocks for instance.
- Check for better deals on your savings, mobile phones, broadband, home insurance and mortgages and don’t be afraid to switch suppliers and banks; you could save literally hundreds of pounds a year for the cost of spending just an hour or two on the computer.
- Be cautious with your cash! It’s tempting to treat family members and enjoy your golden years in style, but don’t forget you may need additional care costs further down the line.
- Ask for help. Family members, friends and other relatives will be happy to advise on day to day financial matters; having someone trustworthy to manage money on your behalf will not only relieve stress but also potentially help grow funds via sensible investments. For large amounts or for more complex money issues, seek reputable, professional help.
- Streamline your finances. Unless you really know what you’re doing, keep things simple and cut the number of bank accounts to, say, one current and one savings – and limit your investments to help keep track of them. It will also reduce the number of passwords you need to remember for each account!
- Be aware. Older people are, unfortunately, often the target for fraudsters, so if in any doubt about a proposed investment opportunity, don’t sign anything and ask for a second opinion from a trusted friend or relative.
- Finally, if the time comes to give someone else the right to deal with your finances, consider setting up a power of attorney. A person can have more than one ‘attorney’ in place and there are different types of power of attorney arrangements in the UK, depending on the region so it’s worth investigating which one applies to you.
Other articles you may like
- Domestic support is available in your homeKeeping things clean and tidy in your own home can get tougher as you get older. Vacuuming and laundry can be harder toContinue reading “Domestic support is available in your home”
- Meet Care Co-ordinator GeorgiaGeorgia is one of three Care Co-ordinators at Birchwood Care Services and has worked with the organisation for 10 months. She is undertakingContinue reading “Meet Care Co-ordinator Georgia”
- Tips for keeping the elderly safe during extreme heatTips for keeping the elderly safe during extreme heat Here in Britain, we are simply not used to high temperatures we sometimes experienceContinue reading “Tips for keeping the elderly safe during extreme heat”
- Birchwood to host Summer Open Day in JuneWe are delighted to announce that Birchwood Care will be hosting an Open Day on Saturday 26th June from 2-4pm. The Open Day willContinue reading “Birchwood to host Summer Open Day in June”
- Your questions answered about a care assessmentWe understand a lot of different terms are used within the industry when it comes to home assessments and what is involved atContinue reading “Your questions answered about a care assessment”
- Cream Tea Giveaway – who will you invite for tea?We’re giving away a Cream Tea for Two with the May issue of Birchwood Care and on our Facebook page. Our Chef atContinue reading “Cream Tea Giveaway – who will you invite for tea?”
- Meet Mary, Domestic Support Worker at Birchwood.Enabling people to retain their independence and stay in their own home is one of the aims of Birchwood Care Services. The teamContinue reading “Meet Mary, Domestic Support Worker at Birchwood.”
- Meet Bethany – Care Co-ordinator at Birchwood.Every day is different and rewarding, says Care Co-ordinator and Relief Supervisor Bethany, who has worked for Birchwood Care Services for just overContinue reading “Meet Bethany – Care Co-ordinator at Birchwood.”
- The Power Of Aromatherapy For The ElderlyThe Power Of Aromatherapy For The Elderly. Aromatherapy is the use of aromatic plants or essential oils to promote wellbeing through scent andContinue reading “The Power Of Aromatherapy For The Elderly”