Nearly three quarters of active savers aged 65 or over haven’t got Power of Attorney (PoA) arrangements in place in the event they cannot handle their own financial affairs, Paragon Bank research has found.
Based on a survey of over 1,500 savers, just 28% of those aged 65+ have PoA arrangements in place. More mature savers are more likely to have a PoA, with 31% of those aged between 75 and 84 appointing an attorney, falling to 24% of those aged between 65 and 74.
Younger age groups fall away significantly; just one in four (10%) savers aged between 55 and 64 have a PoA.
The main reasons cited by those without a PoA include not needing one (61%), not having enough information about PoA (18%) and not wanting to lose control of their finances (17%).
Those with PoA in place are most likely to select a child or children to be their attorney, selected by 52%, followed by a spouse (43%). Meanwhile, 6% of savers have chosen a professional, such as a lawyer or accountant, with a similar proportion also choosing a sibling. A smaller proportion chose a friend (4%).
Factors that influenced savers’ choice of selection included family relationships (77%) and trustworthiness (71%). Factors deemed less important included financial knowledge (22%) and professional expertise (10%).
Of those with PoA in place, over half (51%) found the process to be simple, with one in 10 finding it more challenging.
Chris Williams, Paragon Bank Savings Service Delivery Director, said: “Nobody wants to think about a time when they might not be able to manage their affairs, but appointing a trusted PoA provides a safety net for those unforeseen situations when looking after your finances may become too difficult.
“Appointing a PoA is a sensible practice for savers of any age, but it becomes increasingly important as you mature. Often, it’s only precautionary and most savers don’t ever have to use it, but it’s an important safety net in case you are ever in the position where you can’t handle your own finances.”
He added: “As a savings provider, it is a far simpler process to help the relatives or friends of customers in situations where they are incapable of managing their affairs with an attorney in place. Putting in place the appropriate measures gives peace of mind to not only our savings customer, but also their family and friends.”
