LPA 'crisis' leaves 1.7 million drawdown retirees at risk

More important since pension freedoms

Hannah Godfrey
clock • 1 min read

Four in five retirees (79%) using pension freedoms to manage their retirement savings face a potential 'later-life financial crisis' as they have not yet set up lasting power of attorney (LPA), Zurich has warned.

More than 345,000 retirees using income drawdown to fund their retirement have not yet given a family member or friend the legal authority to make decisions on their behalf if they no longer can. According to Zurich, this financial planning blind spot could prevent an individual trusted by the retiree from immediately stepping in to help them manage their affairs should they suddenly fall ill or lose mental capacity. Without an LPA in place, even next-of-kin would be forced to apply to the courts to take charge of a relative's finances, it added. Zurich said the findings highlight the...

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