Financial Advice For Later Life


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  • Sarah you could expand on these aspects with your background in law and finance Example of potential problems are IHT planning and ER ie where the children are potential beneficiaries and may have there own agenda True also of care funding where choice of home could be related to cost ! Also to decisions about Immediate Needs Annuities I’m sure you have lots of examples I think this is an important area as you really need to be an experienced and emphatic adviser to “tease out “ the problems . Many children are not putting their potential inheritance first and it’s important not to make assumptions but also to be alert to the possibility I think this will probably be of real interest to attendees who themselves probably come across this dilemma
  • Sarah you might like to add a slide with key points and cover briefly Then could you lead into talking about SOLLA and how it was set up to help older people have access to the right kind of advice
  • Sarah this is the key info about SOLLA You can use this as a prompt
  • Sarah you can find out more about this by looking at the 2 links I sent by email The one to the FSSC and the other to the Silver Briefing in Health Insurance
  • Sarah you needn’t do this in much detail but it would be helpful to emphasise that these aspects are required in order to overcome the problem of advisers just having an exam and not either keeping up to date or working in an environemtn which supports them maintaining this knowledge The soft skills are also tested as part of the face to face “audit” which is an hour long viva where candidate has to asnswer questions and talk through a case study that has been given in advance
  • Sarah You know this aspect much better tham me so plase do use this as an opportunity to share your experiences I suppose what we need to emphasise is that the old traditional idea of advice is no longer an acceptable model ie that your early/mid years were ones of accumulation and that your retirement years were simply a time of decumulation The longevity risks of living “too long” are not always adeguately covered by many advisers. Integrating all these and giving tailor made advice [as we discussed the other day] are I agree with you key to this
  • Financial Advice For Later Life

    1. 1. Financial Advice For Later Life Care and Repair Forum Scotland
    2. 2. Population Trends <ul><li>“ We will still be an ageing nation – in 2031,we expect there will be 18 people over 75 for every 10 today.” </li></ul><ul><li>Registrar General Duncan Macniven </li></ul><ul><li>[ Source : General Register for Scotland ] </li></ul>
    3. 3. Ageing Population in Scotland <ul><li>the number of people of pensionable age is projected to rise by around 31 per cent   from 0.98 million in 2006 to 1.29 million in 2031 </li></ul><ul><li>the number of people aged 75 and over is projected to increase by around 81 per cent from 0.38 million in 2006 to 0.69 million in 2031 </li></ul><ul><li>the dependency ratio – the ratio of persons aged under 16 or over pensionable age to those of working age - is projected to rise from around 59 per 100 in 2006 to 67 per 100 in 2031. </li></ul><ul><li>[Source : General Register for Scotland ] </li></ul>
    4. 4. The Need for Access to Specialist Advice <ul><li>There are complex financial decisions to make in later life . Many people think their finances will get simpler but the opposite is true </li></ul><ul><li>Older People have less opportunity to put right any mistakes </li></ul><ul><li>The advice may sometimes be “multigenerational “ but advisers must be aware of issues of confidentiality and best practice regarding “who it the client” </li></ul><ul><li>Higher proportion of decisions made with regard to older client finances require the use of Power of Attorney. Advisers must fully understand the powers and the limitations of an attorney </li></ul>
    5. 5. Powers of Attorney
    6. 6. The Society of Later Life Advisers (SOLLA) & The Later Life Adviser Accreditation <ul><li>SOLLA is a Not For Profit Organisation </li></ul><ul><li>SOLLA was established in January 2009 to support consumers and their families in finding a professional accredited Later Life Adviser </li></ul><ul><li>SOLLA promotes comprehensive financial advice for older people their family and their carers. </li></ul><ul><li>Full Membership of SOLLA is open only to advisers who have passed the The Later Life Adviser Accreditation. [ </li></ul><ul><li>The standards for this were established by the FSSC’s Later Life Adviser Accreditation scheme ( LLAA) </li></ul><ul><li>LLAA was launched in April 2007 in response to the need for consumers and trusted third parties to be able to find qualified advisers who have beyond regulatory competence and expertise in providing financial </li></ul><ul><li>advice in the older client market </li></ul>
    7. 7. Composition of SOLLA <ul><li>Board of Directors undertake the management of the Society. </li></ul><ul><li>Advisory Board :Members appointed by the directors; it comprises individuals who have a proven record in the field of financial advice for clients in later life. Their role is to provide feedback and support for the society. </li></ul><ul><li>Membership categories : </li></ul><ul><li>Full Member : LLAA </li></ul><ul><li>Associate Member : Advisers preparing to take LLAA </li></ul><ul><li>Affiliate Member : Persons in related sectors with interest in LLAA e.g. Care sector/ Legal Profession </li></ul>
    8. 8. The Later Life Adviser Accreditation Standard <ul><li>Minimum requirements </li></ul><ul><li>Before undertaking the LLAA the adviser be deemed competent as an authorised financial adviser and hold a financial planning qualification such as : </li></ul><ul><li>the Certificate in Financial Planning (FPC) or another appropriate qualification accepted by the Financial Services Skills Council (FSSC), such as: </li></ul><ul><li>Certificate for Financial Advisers (CeFA) </li></ul><ul><li>Investment Advice Certificate </li></ul><ul><li>And </li></ul><ul><li>an approved LTC qualification* </li></ul><ul><li>And </li></ul><ul><li>an approved equity release qualification* </li></ul>
    9. 9. The Later Life Adviser Accreditation Standard <ul><li>Application of Soft-Skills & Knowledge </li></ul><ul><li>Adviser has a good working knowledge and understanding of the needs, capacity, and issues of dealing with older clients. </li></ul><ul><li>Continuing Professional Development (CPD) </li></ul><ul><li>Adviser has and will be able to continue to maintain their adviser competence and CPD directly related to the older client matters as appropriate </li></ul><ul><li>Adviser has and will be able to continue to maintain their adviser competence and CPD directly related to the older client matters as appropriate </li></ul><ul><li>Maintain a Supportive Environment </li></ul><ul><li>Adviser must work within or be able to show they can source a ‘Supportive Environment’ to maintain their ongoing learning and CPD to ensure the LLAA standards are maintained </li></ul>
    10. 10. Areas Of Advice <ul><li>An integrated approach is needed which incorporates : </li></ul><ul><li>Retirement income : maximising savings and pension income </li></ul><ul><li>Decumulation aspects : eg </li></ul><ul><li>IHT and estate Planning </li></ul><ul><li>Family Home : Equity Release /Downsizing </li></ul><ul><li>But consistent with need for recognition of longevity risks : </li></ul><ul><li>Balance need for maintaining and maximising capital so older person doesn’t “outlive capital” so investment advise still key </li></ul><ul><li>Unexpected increase in expenditure eg Funding Care both domicilliary care and in a care home </li></ul>
    11. 11. Why SOLLA ? <ul><li>“ Technical knowledge and expertise is hard to acquire but in addition to this you have to be a special kind of person to build a rapport with people -a social service as well as a business person.” </li></ul><ul><li>Lord Lipsey </li></ul><ul><li>“ It is not just about exams, it’s about people who have </li></ul><ul><li>been working in this field for a number of years,who are fully aware of the difficulties and special requirements and of the products available to them, and who empathise with the elderly as opposed to telling them what to do.” </li></ul><ul><li>Teresa Fritz Which Magazine </li></ul><ul><li> </li></ul>