Symponia's March 2007 budget response
Like thousands of elderly people who tuned into the Chancellor’s Budget yesterday, Symponia, the national affinity group for care fees planning and financial advice for people over 65, was disappointed by the details in the Budget and believes that once again, the Government has failed to tackle the plight of Britain’s increasing elderly population.
The national advice group applauds the forthcoming £4,000 entitlement to householders over 65 for loft insulation and the raising of the tax-free personal allowance for people over 65 and 75.
But according to Janet Davies, joint founder and managing director of Symponia, one of the biggest challenges facing older people is getting them to accept benefits that they are freely and deservedly entitled to. She says : “It is partly a matter of people not knowing about benefits that could really make a difference financially, but in some instances, it is not wanting. People of post retirement age tend to be very proud and expect to earn everything that is given to them, which in real terms – they have, by working hard and paying taxes and national insurance all their lives. There are a number of benefits and discounts available to older people and our advisers always flag these up as a matter of course when offering financial advice.”
Symponia is keen to highlight the entitlements of the elderly and says the Government could do so much more in this respect.
What all older people should know (and are usually afraid to ask)
£ If you live alone or are caring for a partner, you could get a 25% reduction in council tax
£ If you are over 65 and need some help with daily tasks, you could be entitled to receive Attendance Allowance. Despite it being non-means tested and tax free, it is one of the biggest un-claimed benefits in the country.
£ You may be entitled to receive Pension Credit which increases if you have a disability.
£ The inheritance tax threshold is increasing from £285,000 to £300,000 and people can take measures to reduce or mitigate this liability altogether, severing the joint tenancy of their homes to take full advantage of their own nil rate band, making annual (permitted) gifts. A full explanation is available at www.symponia.co.uk/adviceinheritance.php
£ Every adult should have an Enduring Power of Attorney, and people could use this post- Budget time to establish one, especially given the changes to the Mental Capacity Act (due October 2007), see www.symponia.co.uk/mentalcapacityact.php for further details.
£ Take full advantage of the new loft insulation grant.
Symponia is also urging people to look at the longer term; plan for, and discuss with their families the need for residential care at an unknown time in the future, and for this they should seek the help of a fully qualified financial adviser, who specialises in care fees planning (rather than a general practitioner IFA).
Elderly people in care can safeguard a proportion of their capital with the use of Immediate Care Plans, but too many people are unaware they exist; for the most part, they are tax free.
The Chancellor may not have awarded older people with a pot of gold, but for the thousands who are just managing, there are many benefits which could make life a lot easier, if only they were being taken up.
Symponia’s mission statement is to liaise with the care sector and offer the very best care fees planning advice. Clients can also access caring, qualified and competent advice on a whole range of elderly associated subjects, including Lifetime Mortgages, Inheritance Tax and potential care fees planning issues.