Later Life Planning – why we need it!

As we go through life, our financial needs evolve. While early adulthood focuses on building wealth and achieving financial stability, later life demands a different approach.

Read on, or click here to watch the video

The office of national statistics in 2023 have predicted that there will be a 65% increase in the UK population of people aged over 80 and a 88% increase in those aged over 90. This is in comparison to a 5% rise in those aged between 30 and 70.

This large increase in the number of people over 80 can bring challenges with sometimes over-optimism that we will all be in good health in our later years. According to a study by “The State of Ageing” for people aged over 80 the percentage that need help with activities of daily living is 36% for men and 49% for women.

Here, chartered financial planner, Andrew Gilmore gives some of the key reasons why financial planning remains crucial during your golden years:


**Peace of Mind**

Financial security provides peace of mind. Knowing that you have planned for your future allows you to enjoy retirement without constant worry. A well-structured financial plan ensures that you can maintain your desired lifestyle and handle unexpected emergencies.

**Generating an Income**

Retirement planning involves optimising your income sources and taking into consideration the taxation implications of each option. Whether it’s pensions, annuities, or other investments, a solid plan ensures a steady stream of income during retirement.

**Estate and Wealth Planning**

Later life planning extends beyond your own needs. It includes safeguarding your legacy and ensuring a smooth transfer of assets to your loved ones. Estate planning, wills, and trusts play a crucial role in preserving your wealth for future generations.


As we age, the likelihood of needing long-term care increases. Financial planning should account for potential care costs, whether you choose home care or assisted living. Explore insurance options and consider setting aside funds specifically for this purpose.


There are insurance plans which offer additional options which can help provide lump sums if you have a permanent diagnosis for a condition which results in you needing permanent care. These cover conditions such as Alzheimer’s, Dementia and Parkinsons.

**Immediate Need Annuities & Deferred Need Annuities**

Should you require regular guaranteed income payments to cover care fees and you have a lump sum available then an immediate need annuity or deferred need annuity may be worth considering. They provide a guaranteed income for life to help pay for care fees. The amount is agreed at outset and if paid to a registered care provider is tax free. It provides certainty over the longer term and some short-term protection can be included.

A deferred care annuity is one which starts after a set number of years and is useful for clients who can cover the cost short term but would like certainty at the end of a set period.

**Equity Release and Property Options**

If you own a property, consider equity release as part of your financial plan. Unlocking the value of your home can provide additional funds for retirement.

In summary, financial planning in later life is not just about numbers; it’s about securing your well-being and leaving a positive impact on those you care about. Seek advice from financial advisers who specialise in later life matters. They can help you make informed decisions that align with your personal circumstances.

Remember, it’s never too late to start planning. Begin today and embrace your later years with confidence!

The Financial Conduct Authority does not regulate will-writing, power of attorney, probate or trust advice’

Sources including:
(1) Society of Later Life Advisers – SOLLA
(2) SOLLA – What to expect from a SOLLA later life adviser.
(4) How to help clients facing later life planning challenges.
(5) Vitality UK

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