Life is filled with events. Some are good, some are bad. Others are avoidable. Others are out of your control. Our guest blog outlines how and why its never too soon to start later life planning.
The key to staying ahead in life is being prepared for the inevitable events that will happen to your family, friends, and yourself. Birth, death, marriage, divorce, tragic accidents, unemployment, and retirement are among life’s most significant events.
And all of these happen to everyone either directly or indirectly. Suppose you are affected by any of these issues. In that case, you will feel their psychological, emotional and physical effects. But it is how you plan for and deal with them that determines your outcome. So while there is nothing you can do to prevent the pain of life, you can weather the storm by planning for them.
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Putting Your Money Where it’s Needed
Financial gain and loss is a fact of life. At some point, almost everyone will go through periods of financial income and financial stress. Finances are essential for short term costs such as rent and mortgage, food and services like power and gas. But money should be set aside for your future medical or financial security. For example, In the UK, the current average cost of a nursing home is £35,000 per year.
A home care agency can help you find the correct location for your specific requirements and negotiate bills and expenses. This means you could potentially pay less than you usually would. In addition, pensions provide an additional source of financial security. Investment is also an option. However, unless you know what you are doing, you should always consult a professional as your money might be at risk from uncertain investments.
Funeral and Insurance Planning
Tragedy can befall anyone at any time. Yet, most people don’t plan ahead for funeral costs. Since the average funeral service costs between £4,000 and £5,000, this is an expense you really need to consider planning for. If you don’t have the money for a funeral, the cost is sought from family and friends or the local council as the last alternative. An enormous financial burden for anyone to have thrust upon them.
However, many funeral providers allow you to plan and pay for any funeral arrangements with monthly instalments. And if you or a loved one dies before final payment, you are still covered by your agreement. In addition to funeral planning, life insurance is also a great idea. Funeral plans can be included as a part of life insurance. Life insurance will also ensure that your family or partner are financially secure following a passing.
State Assistance May Not be Enough
You should make every effort to plan for your own future if you are in a position to do so. This is because you will also qualify for a state pension and benefits upon reaching a certain age – 66 for men and women in the UK. However, this is set to rise to 67 in 2026. And a state pension isn’t a large sum in the grand scheme of things. The UK state pension is currently paid up to £179.60 per week, depending on previous national insurance contributions.
While this is a low amount, UK pensioners can access numerous benefits such as free bus travel, lower utility bills and housing benefit, among others. But even with these benefits, you will struggle with that amount of income. Rising food and housing costs almost guarantee this. For this reason, you should consider a private and workplace pension while you are working. Additional sums will then be available to you upon retirement.