Recent research has shown that 86% of the population wants financial advice to help them prepare for their retirement, highlighting how many people do not feel confident in planning for this pivotal stage of their life.
The vast majority of people surveyed said that they want to ensure that they can financially support themselves during their retirement so that they do not become a burden to their loved ones. However, due to a greater life expectancy, many clients are likely to experience a longer retirement than they had originally planned for. This obviously means they will need access to more savings in order to support their lifestyle for a longer period, or reduce their expenditure during retirement.
One challenge which clients face is how to pass on their wealth without impacting on their own financial security during their retirement. Many people are actively looking for an adviser who has specialist knowledge on how to minimise the amount of Inheritance Tax (IHT) due on their estate and increase the amount they can leave for their loved ones.
Coupled with this, clients must plan for potential care costs which currently cost £29,000 per year on average, along with changes to tax or inflation which could dramatically affect how much they have to survive on during their retirement.
For many, retirement is a period of life to look forward to and enjoy after several decades of hard work. However, these figures show how just many people feel overwhelmed with how to plan financially for this period of their life.
Tom Curran, Chief Executive of estate administration specialists Kings Court Trust, commented: “These figures highlight how the majority of the population is looking to plan for their retirement well in advance so that they do not become a financial burden to their loved ones. Along with mitigating the impact of IHT and planning for care costs in later life, another element that clients need to consider is how their estate will be managed when they do pass away.
Estate administration can be a complex legal process, particularly for clients with a portfolio of assets and investments. Families will often turn to the financial adviser when dealing with the loss of a loved one, so a sound knowledge of the process is essential for an adviser to support their clients at this difficult time.”
Kings Court Trust works with financial advisers, Will writers and other professionals to support their clients when they are faced with a bereavement. For more information on how you can work with us, visit www.kctrust.co.uk/ifa or email firstname.lastname@example.org.