Do you know where your will is? Even more importantly, do the people who will act as your executors, in the event of your death, know where your will is stored?  

The recent discovery at Lloyds Banking Group that 9,000 wills had been left in storage and not passed on to customers serves as a stark, cautionary tale. The bank is now desperately trying to match envelopes with the relevant families.  

The wills were kept in the bank’s ‘Safe Custody’ service – an ironic name given that the custody actually proved too safe, with no one knowing about the wills’ existence. The service closed to new customers in 2011.

The error means that some executors may have administered a deceased’s estate using what turned out to be the wrong will, unaware that the right one was stored at Lloyds. As a result, some families are having to re-examine old bequests years after they were thought to have been settled.     

Not only will this have caused great inconvenience, it will also have been incredibly distressing for those involved. 

Michael Culver, chairman of Solicitors for the Elderly, commented that the processing failure could lead to estates being wrongly distributed, contentious probate claims, negligence claims against executors and administrators, issues with tax payments and, ultimately, the last wishes of the deceased not being honoured.     

The bank, however, has said that it was only in a small percentage of cases that they did not trace the will when a customer died. According to their spokesperson, 90 per cent of the newly discovered wills had already been superseded by a later will or there were copies available elsewhere. In some cases, the estates were declared intestate but had been distributed in line with the deceased’s wishes anyway.         

What action can be taken? Families affected should make a complaint to the Financial Ombudsman and a counter claim against Lloyds directly. Compensation will be offered, including legal costs, and LLoyds have promised that it won’t claw back assets given to the wrong people. 

As for the future, what lessons can be learnt? It is recommended to always register a will. This case illustrates that it is often better to use a solicitor, who will be specialised in making and storing wills, rather than a high street bank. You can also register a will with the Probate Service for a one-off fee of £20. 

The Society of Trust and Estate Practitioners (STEP) advises against safety deposit boxes for wills as it means the executor cannot get access until they get probate and this cannot be granted without a will, so it becomes a bit of a Catch 22 situation.  

If you do have a will stored in a safety deposit box, consider moving it elsewhere to ensure it is accessible. Make sure its whereabouts is known to your executors. It may not be something you or your family want to think about right now but it could save a lot of stress and worry at a difficult time later.

The tax year will be coming to an end on 5th April. With that deadline in mind, we wanted to remind our clients of all the allowances available to you during the tax year. It’s important to make sure you’re maximising your allowance in all areas so that you mitigate the impact of tax. Listed below are a few allowances you should be considering: 

ISA Allowance

With a cash ISA or a stocks and shares ISA (or a combination of the two), you can save or invest up to £20,000 each year per person, meaning that a married couple can invest up to £40,000 between the two of them. 

Top up your pension contributions

You should make sure you check your pension contributions at least once per tax year as they can be a great way to manage your tax liabilities. For the high earners among you, however, it’s important to keep the lifetime pension allowance in mind. The current lifetime allowance is set at £1,055,000. Remember that contributions causing you to exceed the allowance are taxable. 

For those of you who aren’t nearing the limit, upping your pension contributions can be an effective way to mitigate the impact of tax. If you haven’t managed to make full use of your £40,000 annual allowance, you can carry it forward for up to three years. 

Inheritance Tax

The current tax-free threshold is set at £325,000 for single individuals and £650,000 for married couples. Anything over this amount will be taxed. Inheritance tax is where a little bit of planning can pay dividends in the future. This might be by making full use of your annual gift allowance of £3,000 (£6,000 for married couples), putting assets into trust or re-writing your will. 

A new IHT Residence Nil Rate Band (RNRB) was introduced in April 2017. It is in addition to an individual’s own nil rate band of £325,000, and conditional on the main residence being passed down to direct descendants (e.g. children, grandchildren). It is being phased in over 4 years and the full £175,000 allowance will be available from April 2020. The Residence Nil Rate Band will be transferable between spouses and civil partners on death, much like the standard nil rate band. It is the unused percentage of the RNRB from the estate of the first to die which can be claimed on the second death.

Capital Gains Tax

Capital gains tax is a tax on the profits you make when you sell something, such as a second home or a personal possession worth £6,000 or more, except for your car. The tax-free allowance for the 2019/20 tax year is £12,000 per person so couples can pay no tax on a total of £24,000 of gains. Remember that genuine gifts from a spouse or civil partner do not count towards the allowance. 

Boost your children’s savings

The Junior ISA limit is set at £4,368 for this tax year. Why not take the time to give your children’s savings a boost by making sure they’re at the limit? You may even want to contribute to your grown up children’s Lifetime ISA if they have one, and the government will provide a bonus of 25% of the money invested, up to £1,000 per year. 

Your dividend allowance

If you receive dividends through a Stocks and Shares ISA or you’re a company shareholder or director, you can currently receive £2,000 worth of dividends tax free. 

For more information on how to make sure you’re maximising your tax allowances, feel free to contact us. 

You may have already made some New Year’s resolutions regarding healthy eating and exercise but could your finances do with slimming down too? The start of a new year, not to mention a new decade, is a great time to review your financial situation, examine your budget in detail and make plans for the future. Take a look at the following financial resolutions you could adopt for 2020.       

Set goals 

If you haven’t already set any financial goals, now is the time to do so. But be specific. Rather than just saying you want to ‘save more’ or to ‘improve your financial situation’, focus on what you really want to achieve. Do you want to retire a certain number of years early, buy a holiday property or pay off a loan? By pinpointing your objectives, you will spend more time reflecting and plan more carefully. It also means it will be easier to see how you far you’ve got when you come to review your progress this time next year. 

Once you’ve identified your aims, share them with others to make yourself accountable. That way you have more chance of achieving them.     

If you’ve already set some goals, why not take stock and review your objectives? Do they still fit with your circumstances and what you want to gain out of life? Or do you need to make some slight tweaks?   

Track your budget

Setting a budget may sound obvious but sticking to what you’ve outlined is the foundation of good financial management. There are many apps around today that can help you log your spending and more importantly identify where the leaks are occuring. An end of year summary from your bank or credit card company will help you analyse which categories are the main culprits so you can address them in the coming year. 

Watch those habits

Take a look at any financial mistakes you made last year. Did you overspend or overborrow? 

Have you got into a bad financial habit, such as eating out too often, having too many take-out coffees or always paying full price for clothing? If so take a step back, think about the underlying reason and try and change your behaviour.        

On the flip side, if you’ve adopted any good practices try and consolidate them by automating them. If you want to save more for your retirement or repay a debt, automate a monthly debit through your payroll or bank right now while you’re feeling motivated.       

Why not get into the habit of having a ‘no-spend day’ or ‘no-spend weekend’ each month? Eat at home, don’t go shopping and find free entertainment. You may be all geared up to get fit at the start of the year but think twice about an expensive gym membership, particularly if you’re the type of person who ends up skipping sessions once the novelty has worn off. Instead try working out in the park, going for a long walk or using one of the many free exercise apps.   

The goal is to make reviewing your finances a habit, not something you just consider on an annual basis. If you’d like to sit down and discuss your financial situation with us with a view to making changes for the coming year, do feel free to get in touch.

Boris Johnson became Prime Minister of the UK on 24th July, defeating Jeremy Hunt in the Conservative leadership race and famously declaring that ‘do or die’ the UK would leave the European Union on 31st October.

Parliament and the courts had other ideas and eventually – with the support of the Liberal Democrats and the SNP – the Fixed Term Parliament Act was overturned, and a General Election called for Thursday 12th December.

It would be the first December General Election since 1923 – an election which resulted in the UK’s first Labour government, with Ramsay Macdonald’s administration propped up by the Liberals. As we all now know, history did not repeat itself, the Conservatives winning with 365 seats and a majority of 80.

Whatever your feelings on Boris Johnson, the result was a considerable personal triumph. With all 365 Tory MPs having pledged to support his agreement with the EU – and the Labour party set to spend time considering its future direction – he now enjoys a position of considerable power. If he has any opposition, in the short term at least, it will come from Nicola Sturgeon and the SNP. 

So what will the Prime Minister do with his power? In this Special Report for our clients – written over the weekend of 14/15th December – we look at the result of the General Election, what will happen now, the implications for Brexit and what it will all mean for your savings and investments.

The Result

Throughout the campaign, the opinion polls had – on average – given the Conservatives a ten point lead, although that lead appeared to narrow as polling day neared. No one doubted that the Conservatives would be the largest party – but would they get the 326 seats needed to secure a majority? Or would the UK once more find itself with a hung parliament?

Any doubts were dispelled the minute Big Ben finished chiming 10pm and the exit poll was released. The poll was predicting 368 seats for the Conservatives, 191 for Labour and 55 for the SNP – resulting in a Conservative majority of 86.

Confirmation of the exit poll’s accuracy came an hour-and-a-half later as Blyth Valley in County Durham – a seat where Labour had a 17,000 majority in 1997 – fell to the Conservatives with a 10% swing. Roughly 5½ hours later, Dennis Skinner lost the Bolsover seat he had held since 1970 to give the Conservatives the 326^th seat they needed for a majority.

The final result, showing seats won by the major parties, their percentage of the votes cast and total votes cast, was as follows:

Liberal Democrat leader Jo Swinson lost her seat and Jeremy Corbyn – roundly blamed by many Labour MPs and former MPs – will stand down as the party’s leader. As we write this section of the report, former Shadow Chancellor John McDonnell has announced that he will quit the shadow cabinet.

The Victory Speech

As we wrote above, the result is a remarkable personal triumph for a politician who has been written off many times. In his victory speech, Boris Johnson was magnanimous: “Let the healing begin,” he said.

Saturday lunchtime saw him visiting Sedgefield – famously the former constituency of Tony Blair and which returned its first Conservative MP for 84 years – as he thanked voters in the North for their support. In particular, he spoke to people who were not “natural Conservatives … whose hand may have quivered over the ballot paper before you put your cross in the Conservative box.”

All the PM’s speeches over the weekend were conciliatory in tone – and if there was one phrase Johnson used as much in the campaign as ‘Get Brexit Done’ it was ‘One Nation Conservative government.’ So – despite winning a Conservative majority on a scale not seen since Margaret Thatcher – we can probably expect a very different style of leadership. As one writer in the Telegraph put it, Johnson is ‘much more Michael Heseltine than Margaret Thatcher.’

What were the Conservative’s key promises?

Many commentators described it as a ‘steady as you go’ manifesto. The Prime Minister talked about wanting to get a lot done in his first 100 days (which takes us up to March 22^nd). The commitment to increase funding for the NHS will be enshrined in law, an Australian points-based immigration system will be introduced, and there will be major investment announced in the North and Midlands as Boris Johnson delivers on his pledge to upgrade the nation’s infrastructure and spread opportunity more evenly.

Sajid Javid’s first Budget will deliver on the election promise to raise the national insurance threshold to £9,500 a year, which will give a tax break worth just under £100 a year to 31 million workers. We can surely also expect some major reforms to the business rates system in a bid to protect the national high street.

What happens now?

One immediate result of the General Election may be that Her Majesty has to amend her pre-Christmas plans on Thursday 19th: she will now be delivering another Queen’s Speech. This one will, we are promised, feature much less pomp and circumstance and it will confirm many of the manifesto promises and initiatives we have outlined above.

The Withdrawal Bill will almost certainly be brought back to Parliament before Christmas and – as Lord Heseltine has conceded – it will not face any opposition in the House of Lords. It will need to have been passed by 29^th January so that it can be ratified by the EU, and the UK will formally leave the European Union at 11pm on Friday January 31^st 2020.

Looking further ahead, the Sunday papers are promising a Cabinet re-shuffle with up to a third of the present Cabinet axed. Ministers will be chosen for their ability to deliver results, rather than their ability in front of a TV camera. Sajid Javid’s first Budget is now expected in ‘late February or early March’ – which might suggest Wednesday 26th February or 4th March. And the Sunday Telegraph reported that Boris Johnson’s chief aide, Dominic Cummings, will spearhead a radical reform of the civil service to ensure the PM’s agenda is delivered.

There will, unquestionably, be plenty of changes in the weeks and months ahead.

How has Europe reacted?

There are probably three words to describe the reaction in Europe: ‘sadness,’ ‘acceptance’ and ‘relief.’ German legislator Norbert Röttgen – an ally of Angela Merkel’s – summarised the mood with his tweet: “The British people have decided and we have to accept their choice. With Johnson’s victory, Brexit has become inevitable. Our goal now is to keep relations with the UK as close as possible.”

The sadness and acceptance at the UK’s decision was, though, also met with relief. Clearly the trade negotiations will not be easy – you suspect that fishing rights will be a particular sticking point. But the EU now knows that what is agreed in the negotiations – and the rumours over the weekend were that Michael Gove will be in charge of them – will also be agreed by parliament.

One phrase you will undoubtedly hear many times as the negotiations progress is a ‘level playing field.’ Boris Johnson is now in a very strong position with regard to the EU. President Trump has already sent his congratulations and said he looks forward to a ‘massive’ trade deal between the US and the UK. And what the EU does not want, above all things, is what’s colloquially been called ‘Singapore on Thames’ – a low tax, low regulation competitor right on its doorstep.

What does this mean for Brexit?

It means, very simply, that the UK will leave the European Union on 31st January 2020. There will then be a ‘transition period’ where a trade deal is worked out, with Boris Johnson committed to having that deal completed and ratified by the end of 2020. There were plenty of calls over the weekend – from Remain supporters – for that transition period to take much longer (up to five years) but we cannot see it not being completed on time, given the Prime Minister’s commitment. 

With the size of the Conservative majority, the European Reform Group of hard-line Eurosceptics may not be the force it once was, but you suspect there will be a willingness on all sides to get the negotiations completed. If the British people wanted to ‘Get Brexit Done,’ so too does Europe now that it has become inevitable.

What will the result mean for my savings and investments?

Both the pound and the FTSE-100 index rose on the news of the Conservative victory. The pound moved sharply upwards as soon as the exit poll was announced and, having finished November trading at 1.2934, it is now trading (as we write on Sunday morning) at $1.3326 – a rise of 3% compared to the end of November.

The FTSE-100 also rose on the election news and was up by 1.10% on Friday (with the more UK-focused FTSE-250 index up by 3.44% to an all-time high). The FTSE-100 had drifted lower in the run-up to the election and closed Friday at 7,353 – up just six points on the level at which it closed November. As we finish this report on Monday morning, though, the FTSE is up by 1.62% in early trading.

With Boris Johnson launching an ambitious programme of investment in the UK and President Trump calling a halt to any further tariffs on Chinese goods, it will be interesting to see how the stock market performs over the rest of the year. However, even if it does rise, this does not mean that we are guaranteed to see continued growth. There remain plenty of problems in world trade, and there will unquestionably be concern about the scale of the government borrowing needed to pay for all the promised infrastructure projects.

Perhaps the key thing that the election delivers for our clients’ savings and investments – and their overall financial planning – is peace of mind. Yes, markets will continue to rise and fall as they have always done, but it is unlikely that we will see wholesale shocks to the UK’s financial system that we may have seen under a Labour government led by Jeremy Corbyn. Sajid Javid will undoubtedly have one or two surprises in store for us in his first Budget – but we will not see the dramatic changes to personal and corporate taxation that shadow chancellor John McDonnell might have introduced.

As we mentioned above, the Conservative’s manifesto was described as a ‘steady as you go’ document. Armed with his ‘stonking majority’ Boris Johnson has some ambitious plans. But as far as your savings and investments are concerned, we’re delighted to say that for the immediate future, it should be ‘steady as you go.’

Is there any action I should take now?

Yes: you should have a wonderful Christmas. That is not to make a political point: it is, rather, to reinforce the point we made above.

The UK will be leaving the European Union by the end of January: yes, the negotiations that follow may at times hit some bumps in the road. But this election result gives some stability and predictability. It means there will not be the wholesale shocks to the financial system a Labour government might have ushered in. The phrase ‘hung parliament’ can be forgotten.

So no, there is no immediate action that you should take. We will continue to monitor your savings, investments and financial planning as we have always done, and continue to keep you regularly updated. As all our clients know, if you have any questions or concerns at any time, we are never more than a phone call or an email away.

We hope you have enjoyed our reflections on the first December General Election for 96 years – it only remains for us to wish all our clients a very happy Christmas, and a peaceful and prosperous New Year.

With so many different resorts out there, it’s easy to be so spoilt for choice that you just can’t decide where to go. But what if you want to try somewhere a little off the beaten track? Many skiers and snowboarders often opt for the most popular resorts, leading to inflated prices driven by demand. If you’re looking for a more unusual experience, keep reading… 

Mauna Kea: Hawaii 

With the snow season taking place between December and February each year, Mauna Kea offers a unique chance to glide along the slopes of Hawaii. The area is devoid of ski lifts, marked runs or ski-carved moguls. It’s an area for experts, as you’ll have to take an off-road vehicle on the roads between observatories on the 4,270 metre tall mountain. Although lacking in resort facilities, it’s a great example of how such comforts aren’t a necessity when it comes to alpine enjoyment! 

Ski Dubai: Dubai 

Moving on from a tropical island to the desert, Ski Dubai offers an all year round skiing experience at one of the world’s largest indoor ski areas. Ski Dubai houses five full ski runs, including the world’s first indoor black run and a freestyle zone. It’s the perfect opportunity for those who like to experience both climates while taking a holiday. 

Ben Lomond: Tasmania 

Ben Lomond allows skiers to experience snow in an area better known for its surfing and sandy beaches. Being located in the Southern Hemisphere, it means that it has a ski season between July and September, making it a great opportunity for those of you who want to head to cooler climates during the summer. 

Mount Etna: Italy

If the black diamond runs of Europe don’t quite scratch that itch, why not try carving some tracks along an active volcano? Mount Etna, based in Sicily, houses two ski areas in Provenzana and Nicolosi, both with accessible ski lifts. It has a longer snow season than most, running from November until April. The views from the summit of this mighty mountain are incredible, although skiing can occasionally be hindered by the odd bit of volcanic activity here and there. 

Monte Kaolino: Germany 

With our final entry, we’re doing away with snow entirely. Although it is still seasonal (April – October), Monte Kaolino gives skiers the unique opportunity to ski on beautiful, Quartz sand. There’s one lift to take you to the top of its flagship 200 metre run and it’s sure to provide a dazzling experience. You can even leave your thermal gear at home!

We hope you have enjoyed this break from our regular financial articles and that we’ve inspired you to try something a little more unusual for your next ski trip.

The campaigning group, Back to 60, has lost their fight at the High Court to seek redress for the inequality around the state pension age, which affects women who were born in the 1950s.   

The group was claiming that the increase in the state pension age was discriminatory and put women at a severe disadvantage compared with men.       

As women in that age bracket were only told of the change shortly before they reached their 60th birthday, there was little opportunity for them to make alternative financial provision. The group stressed that this had completely destroyed the retirement plans of many women and had affected both their physical and mental well being. 

What exactly changed? 

Legislation in 1995, as part of the Pension Act, equalised the state pension age for men and women at 65. For women, this meant the pension age would rise by 5 years.  

In 2011, however, changes to the act would cause the women’s state pension age to increase more quickly to 65 between April 6 2016 and November 2018. In addition, from Dec 2018 the state pension age for men and women started to increase so that it will reach 66 by 2020.

Due to the 2011 changes, a woman born between April 6 1954 and May 5 1954 has to wait an extra 18 months to receive her pension. The amendments are thought to have affected 3.8 million people. 

The legal challenges 

The Back to 60 group was calling for a full restitution of pensions going back to the age of 60 for women affected. As Joanne Welch, their campaign director, pointed out, “1950s women mainly stayed at home, had part-time jobs, looked after children, the elderly. Their income was supplemented by the main breadwinner – the man.”

It is worth pointing out that the Back to 60 campaign is not seeking the same outcome as the group known as WASPI (Women Against State Pension Inequality), which has been campaigning for a transitional arrangement for 1950s’ born women, in the form of a bridging pension. This would meet the gap between the original state pension age and the new one. It would also compensate women who had already reached State Pension age and lost out They are not, however, asking for the State Pension Age to revert to 60. 

What does it mean for women in the future?    

Unfortunately, the state pension needs to be regarded as a benefit rather than a guaranteed right. Young women need to be making their own pension plans and starting to save as early as possible. It’s worth capitalising on tax relief, matched contributions from employers and  compound growth over time. 

As leading pensions expert Baroness Altmann said, “You can’t rely on receiving state pensions at a particular age and you need to plan for private pensions or other income to have the best chance of the lifestyle you want or need when older.”

Despite the High Court rejecting the claims of discrimination, the Back to 60 group is determined to continue with its campaign and the Parliamentary and Health Service Ombudsman will  investigate a claim of maladministration.     

Whatever the conclusion, the case has highlighted the importance of women being aware of any future changes to the state pension age and protecting themselves financially.

Do you feel like you just go to work day in, day out, with the weeks quickly turning to months and the months to years?    

If that’s the case, you may be going through life with a vague notion that your pension contributions will be enough to give you a comfortable retirement without having done any precise calculations of late.      

Unfortunately, this means you could be on track for a significant shortfall. 

The pension and investment provider, Aegon, warns that members of Defined Contribution (DC) schemes will find that their retirement income will fall short of their expectations if they simply rely on the minimum automatic enrolment contributions and the state pension (currently £8,767). 

According to the insurer’s findings, most DC savers will need to increase their contributions to ensure they enjoy a similar lifestyle in retirement to their current one. It’s, therefore, worth taking stock as early as possible to find out how much more money you need to save.     

The figures Aegon used came from the government’s 2017 auto-enrolment review and highlighted broad target replacement rates (the percentage of an employee’s pre-retirement monthly income that they receive each month after retiring).          

Someone earning an average salary of £27,000 would need a 67 per cent replacement rate to maintain their lifestyle from pension savings of £303,900. They would require an income of approx £18,000 per annum in today’s money to continue to live in the way they were accustomed.    

On top of the state pension of £168.60 a week, a 22-year old earning £27,000 would need to contribute an additional 4 per cent to the current 8 per cent minimum combined contribution to reach their required monthly income. Failure to do so could result in a shortfall of £106,500. The extra contribution required would increase with age to:  

• 13 per cent more for a 35-year old 
• 29 per cent more for a 45-year old 

These figures are based on individuals just being in auto-enrolment schemes and having no existing pension pot. The additional percentages may sound steep but it’s worth remembering that some employers will also match your contributions. What’s more, with tax relief from your own employee contributions, it could cost as little as 1.6 per cent from your take home pay to reach the 4 per cent specified.

The key message is to take stock now. Think realistically about how much you will need to get close to maintaining your lifestyle once you retire. If a shortfall looks likely, explore the option of  paying more than the automatic minimum as early as possible. The longer you wait, the harder it will be to catch up.

There have been several changes relating to Capital Gains Tax (CGT) over the past few years. The coming years are set to bring more. Here’s our summary of some of the more important changes coming that might be coming into effect from April 2020. 

If you are thinking about selling a residential property in the next year or two, you need to know about proposed changes to the capital gains tax rules for disposals from April 6th 2020. 

If you only own one property and have always lived there, you should not be affected. However, if you own more than one property or you moved out of your only property for a period of time, you might face a capital gains tax bill. 

The two main changes you should be aware of are: 

Final period exemption 

The last period of ownership counting towards private residence relief will be reduced from 18 months to just nine. Currently, the final period exemption allows individuals a period of grace to sell their home after they have moved out. However, the government feels that individuals with multiple residences have been taking advantage, hence the reduction.   

Lettings relief

Lettings relief is set to be removed, unless you live in the property with the tenant. For UK property, HMRC must be notified and tax paid 30 days after completion rather than the January following the end of the tax year in which the disposal took place. Failure to pay on time will result in HMRC imposing interest and potential penalties. 

With no transitional measures in place, this means that higher-rate taxpayers previously expecting to benefit from the maximum potential relief of £40,000 could be lumped with £11,200 extra tax overnight. 

Here’s an example of how the new taxes could influence a sale:

Steve, a higher rate taxpayer, bought a flat in April 2009 for £100,000. He lived there for 6 years until April 2015 before moving out to live with his partner. He let the flat until 2020 when he sold it for £300,000. The sale was completed on 4th June 2020. 

If the contracts were to be exchanged before the April 2020 changes, a CGT of £6,618 would be due. However, after the deadline a CGT of £21,636 would be due, payable seven months earlier – this is due to there being a lower period of private residence relief and a lack of lettings relief. 

The next steps

The two above changes are set to be enacted as part of the 2020 Finance Act and at the moment are not definite. The consultation to these steps closed on 5th September 2019. Assuming that draft provisions reach the Finance Bill 2019-20, we will have to see if any changes are made to either after it is debated in Parliament. 

This may seem a surprising suggestion. Surely most people are eagerly looking forward to early retirement, not thinking about postponing it? More time to travel the world, spend on the golf course or help out with the grandchildren sounds an enticing prospect rather than more years at work.

But times have changed significantly since the state old age pension was first introduced in 1909. In those days, it was paid to those aged 70 or more and people weren’t expected to live many years beyond that.           

Nowadays, the state pension can be taken at 65 (66 next year), although this does depend on gender and date of birth. Yet, at the same time, life expectancy has increased. People live on average at least another fifteen years beyond their three score years and ten. 

Back in 1948, a 65-year-old would expect to take their pension for about 13.5 years, equating to 23% of their adult life. This has risen steadily. Figures in 2017 showed that a 65-year-old would expect to live for another 22.8 years, or 33.6% of their adult life.

A significant number of people even live to 100 these days. So much so that the Queen has had to expand her centenarian letter writing team to cope with the number of people requiring a 100th birthday message from the Palace.       

According to the Office of National Statistics, the number of centenarians in the UK has increased by 85% over the last 15 years.This trend is set to continue so that by 2080 it is anticipated there will be over 21,000.

In recognition of the fact that people are living longer and spending a larger proportion of their adult life in retirement, a government review will consider increasing the state pension age to 68 between 2037 and 2039.  

Currently, if someone retires at 65 and lives to 100 it makes for a long retirement. Not only is it  expensive for the state to maintain, the individual is worried about outliving their finances rather than being able to get on and enjoy their retirement. The state pension was not designed to support a long period of limbo. 

Against such a backdrop, it makes sense for some individuals, if they are fit, healthy and capable, to consider working beyond their pension age. There is no longer any default retirement age at 65, so it is perfectly possible to do this.  

The older generation also have a great deal to contribute to an employer in terms of experience and commitment. In addition, it’s well known that going to work each day gives some people a reason to get up in the morning and also to keep young. There are many unfortunate cases where someone has worked all their life, looking forward to their retirement, only to fall seriously ill or die the moment they stop work.    

The number of 70 year olds in full or part-time employment has been steadily increasing year on year for the past decade, according to data from the Office for National Statistics. This hit a peak of 497,946 in the first quarter of 2019, an increase of 135% since 2009. 

So rather than just worry about whether you will have enough for your retirement, maybe it makes sense to keep working a little bit longer.  

As you grow older, one of the things you might be most concerned about is the entire value of your home disappearing on paying care home fees.

Care from the NHS is free, but if you need social care because you are physically or mentally frail, you will have to pay for it yourself.

Over recent years, fees for care homes have risen rapidly. Research has found that Britons pay £10.9 bn of their own money into privately funded care a year. According to market intelligence provider, LaingBuisson, the average bill was £844 a week in 2018, compared with £445 a week in 1998.

If you have more than £23,500 in property, savings and investments, you will have to pay the full cost of care yourself during your lifetime and, if necessary, from your estate after you have died. This may not leave much for your family to inherit. Help from the local authority is available but it is strictly means tested, which results in very few people qualifying for financial help. (The value of your home is not considered in your means test if you or your spouse or a dependant is living there).   

To avoid paying for their social care in the future, some people take steps to get rid of all their assets but this may mean they could end up in a less luxurious care home than they had hoped for. 

Is using a trust an option?        

You may have heard of people protecting the value of their assets and property by putting them into a trust. If this is done before they go into care, the home is not part of their capital and they cannot be required to use it to fund their care fees. Great care needs to be taken, however, around the timing of this.The Local Authority can view such a step as ‘deprivation of assets’ if they feel the intention is to avoid paying care fees and refuse funding as a result.

If you are considering using a trust, it is vital to get professional advice from a solicitor and make sure it is suitable for your individual circumstances. In some cases, there might not have been much benefit. Your income might have been enough to pay most or all of your care fees anyway. The level of your other capital may have been enough to meet the shortfall between your income and the fees for the length of your stay in care.

There were plans for the government to bring in a cap of £72,000 for care home costs in 2020, but these have been scrapped. In the recent Spending Review, an additional £1 billion for adult and children’s social care was announced by Sajid Javid, although it is yet to be seen what that will mean in practice.