Planning for the future means being prepared for uncertainty. However, as this often involves thinking about difficult topics like illness or death, many people shy away from this. Consequently, it could leave them unprepared if the worst does happen.

The good news is, if you face these eventualities now and seek professional advice, you can adjust your financial plan to make sure that you and your family are looked after.

Indeed, as reported by PensionsAge, a new study from Standard Life shows that those who take financial advice are likely to be more willing to discuss the possibility of illness or their eventual death. 

That means they may be better prepared for difficult situations than those who haven’t taken advice. Read on to learn more about how financial advice prepares you for uncertainty in later life.

People who take financial advice are more than twice as likely to have a will

Basic estate planning is crucial if you want to protect your wealth and ensure that your family are taken care of if something happens to you. That’s why it may be important to put a will in place and appoint a Lasting Power of Attorney (LPA) to manage your affairs if you are not able to.

Unfortunately, many people do not have this important protection in place and, if you have never worked with a financial planner, you are more likely to be unprepared.

That’s because the Standard Life study found 54% of advised people have a will, compared with only 27% of those who have not sought professional financial advice. 

Additionally, 42% of non-advised people say they feel uncomfortable thinking about becoming ill, but this drops to 32% among people who take advice.

Ultimately, this means that those who take financial advice are more likely to confront the consequences of difficult issues like illness and death. 

And when you work with a financial adviser, you can plan accordingly so you and your loved ones are better able to deal with these situations if and when they do arise.

5 ways financial advice prepares you for uncertainty in later life

1. Later-life care

If you fall ill and need regular care, this can be a significant financial commitment. According to AgeUK, the average cost of a residential care home is £800 a week (£1,078 a week for a nursing home) and you may need to plan for this cost.

If you do not account for this, you may have to use your other retirement savings, and this could leave you with a shortfall.

Fortunately, working with a planner can help you plan so you can cover care costs without having to make sacrifices elsewhere.

2. Protection policies

Protection policies are one of the most important ways to maintain stability if you suddenly fall ill or suffer a serious injury. 

That’s because critical illness cover and income protection could provide crucial financial support to enable you to pay your mortgage and other essential living expenses if you are unable to work. This means that you don’t have to make sacrifices to your lifestyle, and you will be more able to deal with an unexpected drop in your income.

Additionally, life insurance gives your family a safety net when you pass away. But without one, your family could struggle to cover funeral costs or regular outgoings as their household income drops.

Unfortunately, many people do not have adequate cover, or any protection policies in place at all. The good news is that a planner can assess your protection needs and ensure that you have the right cover.

3. Wills and estate planning

Your will ensures that your estate is divided up according to your wishes when you die. But if you do not have one in place, those decisions are made according to the laws of intestacy. This means that your wishes may not be fulfilled.

Also, not having an LPA in place can cause serious issues if you fall ill and are not mentally able to manage your own affairs. The courts may appoint somebody to make decisions about your estate and this might not be the person you would have chosen. 

Working with a planner can help you ensure your estate is managed in the way you want and your family do not have to go through a contracted legal process when dealing with your affairs.

4. Tax planning

Even with a will in place, it is important to consider the tax implications of your death. That’s because your family may have to pay a large Inheritance Tax (IHT) charge, which means that you cannot pass on as much of your estate as you would like.

Fortunately, there are several ways to reduce the IHT your family pays by gifting money, using trusts, or increasing pension contributions, for example. But you may need to start planning for this soon so you can see the full benefit of these strategies. 

A financial planner can help you explore these options and pass on as much of your estate to your beneficiaries as possible.

5. A flexible retirement plan

Uncertainty doesn’t just refer to illness or death – it takes many forms. Perhaps your retirement goals change, and you decide you want to travel more or give more financial help to your adult children, for example?

Your investments could also be affected by market fluctuations, and you may decide to make changes to your strategy.

Life is unpredictable and there is no telling what will happen in the future. That’s why you need a retirement plan that is flexible, so you can adapt to changing circumstances. And one of the major benefits of working with a planner is that we can help you achieve that.

Get in touch

Preparing for uncertainty later in life is far easier if you start now instead of avoiding uncomfortable questions. Get in touch and our planners will support you in building a financial plan that protects you and your family.

Please contact us on hello@ardentuk.com or call 01904 655 330. As an award-winning financial advice company that was a 2022 VouchedFor Top Rated firm, you can be sure that we’re a bona fide company providing excellent advice and high-quality service.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

Note that protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.