Increased life expectancy means there are more options to consider when planning the ways in which retirement income might be used.
Over the next few decades, the number of families with multiple generations in retirement at the same time is likely to rise significantly. As a result, people may have to think differently about the ways in which they plan to use their wealth in their later years.
Whereas previous generations may have assumed that most of their retirement income would go towards their own living costs, it’s now the case that a significant portion of that income may go to younger family members. From helping with everyday living to contributing to education fees or childcare, the older generation may want to put their own wealth to work – a solution that can benefit everyone. The extent to which this is possible will depend on factors such as your income, assets and wider financial commitments throughout retirement.
As in most areas of financial planning, making the wrong decisions can be costly, so it makes sense to take expert advice before deciding what to do. We’ll help you (or other family members) consider the best course of action, and guide you through the process of putting wealth to work on behalf of the whole family. It is important to note that as the value of investments can rise and fall, positive returns are more likely if you invest for the long term, but this is not guaranteed and you could get back less than you invest. Furthermore, tax treatment depends on individual circumstances and may change over time. The value of any tax benefits or reliefs will therefore vary from person to person and cannot be guaranteed.