Financial planning for different types of carers
By Robbie Lawther, 10 Jun 19
The slides below feature financial tips for different categories of carers from Quilter’s tax and financial planning expert Rachael Griffin
Spouse
Some 26% of carers are looking after a spouse. These people might want to consider the following financial planning points:
• Protection:
Typically a carer will seem like the protective force in this kind of relationship; however it is important that they themselves also take out a protection policy. This is particularly important for full-time carers who might have left the workplace to take on caring duties but in doing so also left behind any employee benefits, such as protection. If someone is caring for their husband or wife and then falls ill it can leave the pair in a very difficult position having to not only cope with the lack of earnings but also the need to pay for additional care.
• Wills:
If you are looking after a spouse who might be suffering from declining mental or physical health it is sensible to make sure that you have a will in place, which makes sure that they are left the right level of funds that they might need for additional care if possible. Wills are also important documents for providing guidance on who someone would like to take on caring responsibilities for dependent children. If a couple has young children but one half of the couple is too unwell to care for the children, it is worth spelling out in a will who would be best placed to take on the child care.
• Retirement planning:
While carers may often put the person they are caring for first, it is crucial not to forget that at some point you are going to need some retirement provision. Importantly, full-time carers who have left work to take on caring duties should if possible continue to regularly contribute to a pension or make sure they have some provision for retirement.
Tags: Quilter
