Today is Older People’s Day 2010. This national day, set up by the government and other supporting groups, aims to recognise the impact of people living for longer.
In fact, by 2020 half the population of the UK will be aged 50 or over.
These changing demographics bring with them various challenges for society. More people living longer means that public services will need to become tailored to their needs.
Our Financial Planning will also need to refocus to help individuals meet the various challenges associated with living longer.
A few of the main personal finance issues to consider as a result of this continually improving life expectancy include retirement planning, care fees planning and inheritance tax planning.
A longer time spent in retirement means needing to have more in the way of financial resources. Alternatively, people can work for longer to shorten the length of their retirement or accept a less costly lifestyle in old age.
Care fees planning is becoming more important as people live for longer and tend to require more in the way of long term care in later life.
Inheritance tax planning becomes a bigger concern in later life, as parents and grandparents want to ensure they leave the value of their estates to beneficiaries in the most tax-efficient manner.
What is needed to face up to each of these financial issues is considered prior planning. Waiting until you reach retirement before starting to plan for old age is generally a very poor strategy.
Photo courtesy of rileyroxx.
