A recent study has found that 84% of childless Brits haven’t received any form of financial planning support.
IFA Magazine reports that of the UK adults without children surveyed:
- 61% don’t currently have a will in place
- 86% have no Lasting Power of Attorney (LPA).
The survey results raise interesting questions about the need for estate planning, the importance of enjoying your hard-earned money in retirement, and what the term “legacy” even means.
At Globe IFA, we believe that financial planning can help everyone and would always advocate for a long-term plan, whatever your family setup.
Keep reading for a closer look at the report and why legacy planning matters.
Legacy and inheritance look different for everyone, but planning remains important for most
According to IFA Magazine, nearly a fifth (18%) of UK adults without children don’t see the point of legacy planning, and 16% don’t plan to leave any inheritance at all.
The Brits in this 16% intend to spend their money in retirement, predominantly on:
- Travel (33%)
- Improved quality of life (30%).
Some survey responders did plan to leave an inheritance, anticipating leaving money to:
- Partners (32%)
- Nieces and nephews (23%)
- Siblings (21%)
- Charity (18%)
- Friends (11%).
More than a quarter (26%), though, believe they don’t need children of their own to leave a legacy. These responders saw legacy as:
- The extended family they leave behind (21%)
- Their positive influence on others (19%)
- The impact they leave on their profession (8%).
It’s clear that there isn’t a single “right” way to retire or leave an inheritance, but understanding what these things look like for you – and having a plan in place – could help to provide peace of mind that you’ll leave the legacy you intended.
Estate and inheritance planning is about more than having a will
Unless you plan to leave your wealth exactly in accordance with the rules of intestacy, having an up-to-date will is important for ensuring your wishes are known and enacted on death.
You might have read our article from July last year, ‘Why you need a will as intestate deaths reach a 5-year high’, in which we used Canada Life data to reveal some prevailing myths:
- 33% of Brits believe their estate automatically passes to their loved ones
- 17% think that they don’t need to update their will if they get married, or remarry
- 16% expect a cohabiting but unmarried partner to automatically inherit.
Even if you don’t have children of your own, if you want a say in exactly who receives what when you pass away, a will is the simplest way to do this. Get in touch today, and we can use our connection with Penrose Wills to help you put an up-to-date will in place.
A Lasting Power of Attorney saves your loved ones time, money, and undue stress
If you lose the capacity to look after your own health and wellbeing, or financial affairs, you’ll want to know that responsibility for these things is in the hands of someone you trust. This is where an LPA comes in.
There are two types:
- Health and welfare, covering daily routines like washing and dressing and ongoing care.
- Property and financial affairs, which might cover bank accounts, household bills, and selling a property.
You can choose one or both, and they can be taken out at the age of 18. Doing so means that you name the people you trust to look after your financial affairs and wellbeing, giving you peace of mind.
Doing so is also cheaper than the alternative, which requires a time-consuming deputy appointment via the court of protection and could cause unnecessary delays and stress at an already challenging time.
You are free to enjoy and pass on your money as you like, but planning can help
With no intention of leaving an inheritance, you might fill your retirement with world travel, ticking items and places on your bucket list. After a lengthy career, this is a wonderful way to kick back and enjoy the fruits of that hard work.
But you’ll still want to ensure you don’t run out of money. Managing pension decumulation can be tricky, as outside factors (like inflation and stock market movements) can have as much impact on your wealth as the money you spend. Budgeting for the whole of your retirement – without knowing how long that retirement will last – is hard. Professional financial planning can be invaluable here.
If you do intend to pass some wealth on, it makes sense to do so as tax-efficiently as possible so that your loved ones can enjoy as much of your wealth as possible. Globe IFA’s expert planners might also be able to help you look at alternative strategies to leaving a legacy upon death.
Giving while living, for example, might help you to leave a living legacy, so you’re still around to see the impact your generosity has.
Financial planning is about living the life you want to in the present, knowing that your future is secure. This gives you confidence, a sense of control, and peace of mind, whether you’re single or married, and whether you have children or not.
Get in touch
Please email hello@globeifa.co.uk or call us on 020 8891 0711 to discuss how Globe IFA’s expert financial advisors can help you manage your long-term financial plans.
Please note
This article 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.
