73 per cent of retirees haven’t set up an LPA, according to a new study
A Lasting Power of Attorney (LPA), gives either a relative or a friend the legal authority to make decisions on your behalf, including financial decisions, if you fall ill or are unable to make the decision yourself. If you do not have an LPA set up, then an application must be made to the courts to access the person’s finances, even if you are a relative.
73 per cent of pensioners have yet to set up an LPA, according to a new study.
The study was based on the latest Financial Conduct Authority (FCA) data and coincided with Dementia Action Week. There are currently 850,000 people in the UK living with dementia, according to the Alzheimer’s Society.
Experts are concerned that many people may be at risk if their health deteriorates, with registering a Lasting Power of Attorney becoming more important since the pension reforms.
It is estimated that more than 600,000 people have changed their savings into drawdown since the Pension Freedoms in 2015, with many not having an LPA.
Morven Lean, Programme Partnerships Officer at the Alzheimer’s Society, said: “There is still a stigma surrounding LPAs, where people can be reluctant to consider a time when they are not able to make their own decisions.
“Not having an LPA or deputy can – in worse case scenarios – lead to situations where assets and equity may be lost and those in a vulnerable position are forced to make decisions they are not capable of making.”
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