Plan for later life

A financial plan could help you grow older more comfortably

How you choose to spend your later years, is up to you. You may hope to travel the world, or simply enjoy some well-deserved downtime with family and friends. Whatever your goals, a financial plan is one of the best ways to make it happen. We have some information that can help you make the right choices.

Make a plan that's right for you

  • Planning for your property

    Your home could be your biggest asset

    If you own your own home, it could be your most valuable financial asset. In your later years, you may have the option of using it to release some income.

    We have put together some of the ways your property may be able to complement your pension. However, consider your options carefully and make the choice that is right for you.

    Release equity from your home

    One of the options available for homeowners over 55 years old, is equity release. This is when you borrow money against the value of your property. It’s worth remembering that the amount you borrow, plus interest, is repaid when you die. This can therefore reduce the value of your estate. Our mortgage experts at Halifax can explain more.

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    Move somewhere smaller

    If the time is right, ‘downsizing’ your home may be an option. This could help you free up some money to use as income in later life. It could also be a good way to simplify your life and potentially reduce your cost of living for years to come.

    The experts at Halifax have additional information, which may help you decide if this option is right for you.

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    Buy a second home

    If you have the money, buying a second home to rent out, could be a way to get a potential income when you are older.

    Depending on the type of property you buy, you could also use it as a holiday home for quality time with friends and family. Halifax have some guidance to see if this is an option for you.

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    A few things to consider if you are thinking about moving home

    If selling your home is part of your financial plan, you’ll want to be sure it makes good financial sense. Think about how much your home is worth, how the housing market is performing, and if your home is ready to be sold. Most importantly, you need to be sure that moving will be right for you. 

    We have a few things for you to consider which may help you to decide.

    • Factor in all the costs - Moving house can be expensive. Which report that the average house move in the UK costs on average £14,000. So, it’s important to look at the big financial picture, including the difference in the costs of living in a new property.
    • Move for the right reasons - A move is about more than money. Think about how a new home would improve your life in terms of location, lifestyle, social circle, amenities, activities and family connections.
    • Make sure you’ll always feel at home - If you think this will be the last time you move house, choose a property and area where you’ll be happy to live for many years to come. After all, some homes are more practical in later life than others.
  • Planning your investments

    The value of an investment and the income from it can go down as well as up and you may get back less than you invested. We don't provide advice, so if you are in any doubt about making your own investment decisions we recommend you seek advice from a suitably qualified financial adviser. There will normally be a charge for that advice

    Are your investments still right for later life?

    It’s good to think about the role your investments will play as you get closer to your retirement. You may still be happy with them, or you may want to make some changes. Some people choose to reduce the amount of risk they are taking and target the potential additional income in later life. We can help you decide what is right for you.

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    Self-Invested Personal Pension

    If you are a confident investor, you could choose to invest in a Self-Invested Personal Pension – or SIPP. A SIPP gives you all the standard tax benefits of a pension, but you get a greater investment choice, which can also help spread your money further and reduce your risk.

    Understanding SIPPs
  • Planning your money

    Make a financial plan that survives you

    For a complete later life financial plan, it’s worth thinking about what you want to happen after you die. This includes planning for your estate. The sooner you do this, the sooner you can be sure your loved ones will be taken care of in future.

    We have a few things for you to consider.

    Have an up-to-date Will

    You can help to make sure your loved ones are looked after when you die by having an up-to-date Will. That way you can make sure that you pass on any money or possessions in the way you would like. There is more information to help you on the government website.

    Making a Will

    Life insurance beneficiaries

    As well as naming a pension beneficiary with your pension provider, you should also make sure you have a beneficiary named on your life insurance policy. Make sure that you keep this up-to-date as things may change. It’s also important to let your loved ones know if you have a life insurance policy in place.

    Understanding life insurance

    Someone to manage your affairs

    When making a plan for later life, think about who you would want to make decisions for you, if you are unable to make them yourself. Setting up a Power of attorney will allow you to legally appoint someone else to look after your affairs. This gives you peace of mind that someone you trust is in charge of your affairs if you have an accident or an illness and can’t make your own decisions. 


    You can find out more information on making and registering a Power of attorney on the government website.

    Power of attorney
  • Make a plan for your home and your money

    You may want to leave as much as you can for your family and friends after you die. It’s worth knowing that there can be a lot of planning involved to make that happen. We’ve put together a couple of points that you could think about now – if you haven’t already.

    Who will inherit your home?

    If you plan to pass your property onto your family, there are a few things to think about. For example, if your estate exceeds the Inheritance Tax allowances, a gift of your home to your children or grandchildren could secure an additional tax-free allowance of £175,000 (called the Residence Nil Rate Band). There is more information about Inheritance and Inheritance Tax on the government website.

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    Who will inherit your pension?

    You may be able to pass on your pension to a beneficiary. To do this, make sure you have a beneficiary nominated on your policy. It can be your spouse, family member or a friend. You can find out more from the pension experts at Scottish Widows.

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  • Later life care

    Even if you are as fit as a fiddle today, there’s no escaping the fact that our health can deteriorate as we get older. So planning for later life care and the costs of this is something you might want to think about. Make your family aware of your wishes and it could make things a little easier for you and your loved ones in case you need additional help.

    Consider a funeral plan

    It may be a long way off and not something that you want to think about, but planning your funeral in advance takes some of the responsibility off your loved ones after you die. Having a funeral plan today gives you peace of mind knowing you’ve already covered most of the costs. It will also make sure that you get the type of funeral you want. 

    A funeral plan lets you pay in advance for some of your funeral, at today’s prices. This can be arranged with a funeral director or a funeral plan provider. The money you pay in can only be used for funeral costs. Once you've decided what you want your plan to include, you can pay for it with a lump sum or with monthly instalments.

    Support with estate administration​

    As part of our wider group, we can introduce you to the Lloyds Bank Estate Administration Service.

    If you need support and guidance with any aspect of administering an estate or if we are appointed as the Executor of a Will, please contact us on 0800 121 8713 (or +44 1733 286 482 if calling from abroad). Lines are open Monday to Friday, 9am – 5pm. Calls may be monitored or recorded.

    Our initial support and guidance is fee free and without obligation. If you think the service is right for you, we will explain our fees and charges to act as Executor or Administrator (England & Wales only) in an Estate. Fees and charges for our services are charged to the Estate.​

Planning your pension

Understanding your pension options

When you turn 55 years old (57 from 2028), you can start to access your pension. You can take a guaranteed income for life (an annuity), a flexible drawdown, a lump sum, or simply choose to leave things as they are.

You are not limited to just one of these options. For example, you can take a lump sum (up to 25% tax free) along with an annuity or flexible drawdown and leave the rest invested. Even if you have an idea what you plan to do, it could be helpful to get advice before you make a decision, but you may be charged for this.

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Transferring to consolidate your pensions

If you have more than one pension you could consolidate them into one pot, it could simplify things when starting to plan for retirement and may save money on charges. However, transferring may not be right for everyone, so look at your options carefully.

Managing your pensions

Any questions?

Pensions can be complicated, so it’s normal to have a few questions. We’ve put together a list of FAQs that we hope you’ll find helpful.

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Track down lost pensions

You can track down any lost pensions on the government website. You can also find out how much State Pension you could be entitled to and when you can claim it, using the government's pension calculator.

More support

Money management

Whether it's budgeting and saving, or helping someone else, we have tips and tools to help you.

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Life events

We are by your side through life’s key moments.

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