Later life planning isn’t something a lot of young people like to think about. It’s also not something you need to panic about when you’re in your 20s and early 30s, but it should be on your radar. That’s why I’m sharing some simple tips that might help you save you thousands in later life.
I’ve been lucky enough to see the Chartered Insurance Institute’s (CII) latest guide, which contains some really good insights into how to prepare for later life. So, I am going to share some of the key points with you.
In keeping with this blog, the guide does not talk about financial services products, but about the kind of conversations you can have to improve your wellbeing, both as carers and people needing care.
This post will focus on tips for 18-30 year olds, but the CII have produced guidance for all
As always, I am not a financial adviser, and this is not financial advice. Please seek advice from a qualified professional before making any major financial decisions.
- Who should I talk to?
- How can I start the conversation?
- How can I plan for later life more effectively?
Who should I talk to?
So often, we say “It’s too difficult” or “I don’t know where to start”. Simply talking to someone is a great first step.
There is no right answer for who you should or shouldn’t talk to. Just make sure you trust the person you talk to.
Here are some ideas of people you could speak with about later life plans and money more generally.
Conversations for yourself
Parents or older relatives and friends
An obvious place to start is with your parents. Find out what they did and when and if there’s anything they’d recommend or if there’s anything they wish they’d done differently.
This isn’t an option for everyone. If it isn’t for you, try speaking with an older relative or friend.
Try speaking to your employer. It can be helpful to find out what support your workplace offers in the event of disability or serious illness.
You could also ask about your workplace pension offering. Make sure you’re getting the most out of it you can!
Financial advisers and accountants
It may be worth starting to speak to a financial adviser or accountant.
Conversations for a loved one
You might want to encourage older relatives to speak about later life planning.
Firstly, you should speak to the relatives in question themselves. Encourage them to speak to their friends too and find out what they’re doing.
Speaking with a lawyer can be helpful for anyone after a life changing event. This is no different for older relatives.
But, many people get behind on this, so it’s worth catching up with a lawyer if you haven’t recently. This can help make sure you’re up to date with all your affairs.
They might want to consider things like a Lasting Powers of Attorney. This allows them to decide who has control of their financial and health decisions if they no longer have capacity.
How can I start the conversation?
It’s engrained in us from a young age that talking about money is bad. So, it’s not surprising that we struggle to have these conversations or know where to start.
Conversations about yourself
Firstly, make sure you trust the person you want to speak to. You should also make sure they’re happy to speak with you and help you.
Respect their opinions and try to understand their point of view. It might differ from yours, but this isn’t necessarily a bad thing!
Conversations about a loved one
If you’re speaking to a loved one about their affairs, make sure you listen more than you speak. Try and understand their feelings and concerns before you jump in and start offering advice.
You might want to try focusing on everyone’s wellbeing, rather than quizzing them about their financial plans. This could help them understand why you want to have these discussion.
It might help to start the conversation when you’re doing something else. Going for a walk or making a cup of tea can create a more relaxed atmosphere and help everyone feel comfortable.
How can I plan for later life more effectively?
While you don’t need to panic just yet, there’s a few things you can do to put yourself in the best position possible.
Get your affairs in order
It doesn’t matter how much – or how little – money you have. A will is important for everyone.
Another thing to consider is life insurance. This has caused a bit of a stir on social media this week, but if you want to make sure you’re loved ones are protected in the event something happens to you, it’s at least worth considering.
Take a health check
Where possible, try and keep yourself as fit and healthy as possible. Simple things, like taking your blood pressure regularly and eating healthily will all help. Also, it’s worth seeing a doctor if you experience any changes in your health – however big or small.
Anyone aged between 40 and 74 is eligible for a free NHS health check. This might not help you, but it could be worth encouraging older relatives or friends to get their health check.
Understand your future costs
You might find it helpful to know what your future costs could be.
Did you know the average cost of a week in residential care is over £800? In the UK, you can get this funded by social services – no one will be denied care who needs it!
But, if you want more choice about your care, you might want to consider funding it yourself.
Also, consider the cost of retirement. How much do you need to live comfortably in retirement? Once you have a number in mind, you can start working out a plan to get there.
If you enjoyed this post, please like and share it across social media or with your friends! I’d also love to hear your thoughts and experiences. Is there something I missed out? Do you have any tips on how to save thousands in later life? Is later life planning on your radar at all at the moment?
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