19th February 2009

One step short?

For the first time ever, there are now more people in the UK aged 60 and above than there are under 18, and more pensioners than there are children under 16. (Source: Office of National Statistics mid-2007 Population Estimates (2008)).

When you take into account these increasing demographic changes and the increasing life expectancy of the over 60’s sector, it is essential that financial planning for the future does not stop once a client’s pensions are in payment.

It is highly likely therefore, that many IFA’s clients will fall into the over 60’s category and as such, should be offered advice on how they are going to protect their assets whilst being able to plan ahead for their Long Term Care needs.  The need for this type of planning was further highlighted back in March 2006, when Sir Derek Wanless found that over 2.4 million people in England alone have care needs.  

Unbeknown to so many families, there are now regulated products on the market that, with the right advice, can provide tax-free funding for care home fees for life.  These products can be tailored to suit each individual’s needs and can ease the worry about how to fund for ongoing cost of care.  Although these policies may not suit every client circumstance, they are an essential part of the advice process. 

Liz Faye, Director of Palm Financial Care Limited says, “Some advisers I speak to simply aren’t aware that since 31^st October 2004, care fees planning advice has been regulated under the Financial Services & Markets Act. This clearly states that ‘any policy sold or held out as being suitable to meet the long-term care needs of the consumer is covered by the definition’.  Even if you are recommending the use of a Capital Investment bond, if it is for the purpose of funding long term care needs, you must hold the relevant CF8 qualification or call in a suitably qualified specialist”.

Liz, whose firm specialises in long-term care advice, offers a referrals business, where financial planners can ensure their clients receive expert advice and the opportunity to earn up to 20% of any business written, per case as a referral fee. 

“Long term care advice isn’t just about structured products.  With the right advice given at the earliest opportunity, clients increase their funding options and could end up saving thousands of pounds over the term of their stay in care”.

For further information, please contact Liz on 01282 613006 or 07815 290392.  www.palmfc.co.uk/aboutus.php