Financial preparation for retirement

Video: Simon Reed, Personal Finance Editor at The Independent, talks about how to financially prepare for retirement.

Two elderly spectators at a football match. (Harry Engels | Getty Images)

We are taking a gamble with what will happen to us in our older years because we are in denial about the ageing process, a charity has claimed.

Older people’s charity Anchor warned that nearly two-thirds of us have never thought about what could happen if we end up needing care in later life, despite it being a life-changing decision. Meanwhile three-quarters of Brits who say they would trust someone else to make crucial decisions about care options on their behalf, haven’t talked about their care options with that person.

Jane Ashcroft CBE, chief executive of Anchor, said: “People are missing out because they aren’t thinking early enough about how they want to live in later life.

“It’s worth exploring the full range of retirement options, from retirement villages to leasehold or sheltered housing, where you can live independently and have care options should you need them.

“It’s never too early to talk to your loved ones about the future, and work out what’s right for you.”

The crucial point is that you should talk things over long before you need to. If you plan something in comfort, you are much likely to make an informed decision. If you wait to make a decision in a crisis, you’re much more likely to make a wrong and possibly costly mistake.

There are some useful resources online that can help you plan your finances ahead of time.

Age UK is a national charity that offers information, advice and guidance on a range of money matters in later life at ageuk.org.uk

Anchor has a range of advice on planning finances for retirement living at anchor.org.uk/greymatters

FirstStop Advice is an independent, free service offering advice and information for older people, their families and carers about housing and care options in later life at firststopcareadvice.org.uk

The Money Advice Service is an independent service, set up by the government, to help people make the most of their money at moneyadviceservice.org.uk