Lasting Powers of Attorney required
A prominent pension provider has warned that retirees could be preventing their families from helping them manage their finances should they become too ill to manage their affairs themselves causing potential financial crisis. According to a recent survey, retirees using income drawdown to fund their retirement have not, in the majority, set up Lasting Powers of Attorney (LPA) whereby they can appoint trusted family members or professional advisors to access funds should they not be able to through illness or mental capacity. This means that even a wife or husband would be forced to apply to the courts by way of a Court of Protection application to take charge of their relative’s finances. More and more people have to make complicated financial decisions on their pensions into older age; the risk of sudden illness or dementia increases. Many retirees are unprepared for this eventuality. The pension provider advises that the time to set up an LPA is well before you need it, and they will be highlighting this to their customers.