The amount of money owed by those planning to retire over the course of the next 12 months has fallen for the fourth year in row, according to the latest research by Prudential. This year’s retirees who still have debts owe an average of £18,800, a fall of £3,000 or 14% from last year and a drop of nearly £20,000 since 2012 when the average amount owed was £38,200.
According to a recent article in the Daily Telegraph, drawing on data from the International Longevity Centre (ILC) and the Institute for Fiscal Studies (IFS), baby boomers are a “frugal not frivolous” generation, with the data revealing that people in their sixties and seventies are saving nearly twice as much money as thirty and forty-year olds.
Money typically flows down through generations. This is the way it has always been and our natural life cycles will continue to ensure it is likely to be that way for the foreseeable future.
If you are a parent, you will initially support your children, before eventually leaving them an inheritance.
The cost to you of care delivered by a local authority or trust is determined by a Care Assessment, which takes into account what your needs are and the services required and then Means Testing, which looks at how much capital and income you have that can be taken into account to offset the cost to the provider.
Last year we went over and above the call of duty in our Autumn Statement Preview: we combed the Chancellor’s Twitter feed to look for clues as to what might be in his speech.
National Insurance contributions go towards things like your State Pension but they don’t count towards the costs of social care. This type of care is managed by your local authority and generally comes at a price. That is why you have to apply directly to them if you need help with paying for long-term care. Your local authority (or Health and Social Care Trust in Northern Ireland) will first carry out a Care Needs Assessment to find out what support you need.