Later-life planning is the process of securing your financial and personal affairs so that you stay in control of your money, your care, and your legacy as you age. It typically covers long-term care planning, inheritance tax planning, estate planning, lasting power of attorney, retirement income, and sometimes, equity release. The goal is to make considered decisions while you have the freedom to do so, rather than being forced into rushed choices at a difficult time.

A good later-life plan considers the financial decisions that may affect you and your family as you get older. This can include care costs, retirement income, inheritance tax, estate planning, lasting power of attorney and, sometimes, equity release.

Looking at these areas together can help you make more joined-up decisions. For example, drawing pension income in the wrong way could increase your inheritance tax liability from April 2027.

Three common pitfalls of retirement planning are:

• Underestimating care costs (the UK average weekly cost of a residential care home is £1,298, rising to £1,535 for nursing care, according to carehome.co.uk, updated 30 July 2026)
• Leaving estate planning too late for strategies like lifetime gifts and trusts to be fully effective (these often require at least seven years of advance planning)
• Failing to set up a lasting power of attorney before it is needed. Once someone loses mental capacity, the only route is through the Court of Protection, which is significantly slower and more costly.

Powers of Attorney involve the referral to a service which is separate and distinct to those offered by St. James’s Place and, along with Trusts, are not regulated by the Financial Conduct Authority.

Warning signs may include unclear fee structures, high-pressure sales tactics, a lack of transparency around risks, or promises of guaranteed returns. You should also be wary of advisers who cannot verify their qualifications. If you have any doubts about an adviser’s credibility or recommendations, it is always best to seek clarification or consider alternative advice.

The honest answer is earlier than most people think. Strategies such as lifetime gifting and trust planning require at least seven years to be fully effective for inheritance tax purposes. A lasting power of attorney is best set up while you are still fit and healthy. And care funding research is far more useful when you are not under pressure. Most people who seek professional advice in their 50s and 60s have significantly more options than those who come to it in their 70s or later.

Powers of Attorney involve the referral to a service which is separate and distinct to those offered by St. James’s Place and, along with Trusts, are not regulated by the Financial Conduct Authority.

Long-term care funding depends on your savings, assets, and income. In England, local authority funding is available if your savings and assets fall below £23,250. In Scotland, free personal and nursing care is available to those with less than £35,000 in capital. For those who do not qualify for state support, costs are met from income, pension funds, investments, equity release, or selling a property. Professional advice helps you model which combination of resources will make your money last longest without unnecessarily reducing what you leave behind.

Equity release is a lifetime mortgage. To understand the features and risks associated with such products, please ask for a personalised illustration.

A lasting power of attorney is a legal document that allows a person you trust to manage your financial affairs, property, and, if you choose, your health and care decisions, if you become unable to do so yourself. It must be set up before you lose mental capacity. Without one, your family has no automatic right to access your finances and would need to apply through the Court of Protection, a process that can take months and cost thousands of pounds. Setting one up while you are well is one of the simplest and most important steps in any plan for later life.

Powers of Attorney involve the referral to a service which is separate and distinct to those offered by St. James’s Place and, along with Trusts, are not regulated by the Financial Conduct Authority.

From April 2027, most unused pension funds and death benefits will be included in the value of your estate for inheritance tax purposes. This is a significant change and will affect many families who had planned to pass pension wealth on as a tax-efficient legacy. As with all tax rules, this treatment can change and depends on your individual circumstances. It makes estate planning and pension income strategy more closely connected than ever. Taking professional advice now gives you time to adjust your plan before the rules change.