Do I still need an IFA age72

agent53

I pay an IFA for dealing with my Aviva pension fund.
I already get my state pension fund and a small NHS pension.
My Aviva fund (£100,000 at present)came from another job pension plus meging small pots which he did.
Do I still need my advisor? Can I cut out his fees? I get an annual review by phone and nothing changes. No other advice now. I can access my Aviva pot on line and take funds when needed.
Thanks

Brie

I don't know the proper answer but I understand the temptation which will no doubt save you a %% or 3.  

Does someone else know how to access your account should you be unable?  This was one of the questions that was discussed when I was trying to line up an IFA (2 years on with little luck).  Basically - if you get hospitalised or similar and needed some bills paid could someone get money in to your account and off to wherever.  It's a case of someone have an POA plus knowing all of what you have going on.

Albermarle

It sounds like you do not need them now, but it is often mentioned on this forum that an IFA can actually get more useful as you get older.
This is in case of any loss of cognitive ability, especially if having to deal with changes in pension/tax legislation.
Also often a partner maybe be clueless about personal finance matters, so an issue if you die first.

dunstonh

Do I still need an IFA age72

Age is not a factor as to whether you need an IFA or not.

Do I still need my advisor? Can I cut out his fees? 

Depends on what the IFA is doing for the fees.

I get an annual review by phone and nothing changes.

If there are no personal changes and the IFA is not running the portfolio (many do but some don't) and you can do what is needed then you can call it a day.

HedgehogRulez

More pertinent question is have you ever needed the services of an IFA?

GeoffTF

Brie said:

Does someone else know how to access your account should you be unable?  This was one of the questions that was discussed when I was trying to line up an IFA (2 years on with little luck).  Basically - if you get hospitalised or similar and needed some bills paid could someone get money in to your account and off to wherever.  It's a case of someone have an POA plus knowing all of what you have going on.

How likely is it that someone will suddenly and permanently lose mental capacity? I could not find any good statistics on that. The best that I could find was statistics for DoLS which stands for stands for Deprivation of Liberty Safeguards. This is a statutory framework in England and Wales that protects people in care homes and hospitals from being inappropriately deprived of their liberty.

* There were an estimated 332,455 applications for DoLS received during 2023-24,
* 56% of applications were not completed because the patient recovered.
* Approximately 58% of DoLS applications relate to people over 74.
* In 2023, the UK had approximately 5.4 million people aged 75 or older.

Those numbers imply that about 4% of over 74s have successful DoLS applications. Some of those will have had forewarning and could have taken financial action at that stage. Others will recover their mental capacity. Mental health problems are common, but sudden and permanent loss of mental capacity does not look particularly likely.

Albermarle

GeoffTF said:

Brie said:

Does someone else know how to access your account should you be unable?  This was one of the questions that was discussed when I was trying to line up an IFA (2 years on with little luck).  Basically - if you get hospitalised or similar and needed some bills paid could someone get money in to your account and off to wherever.  It's a case of someone have an POA plus knowing all of what you have going on.

How likely is it that someone will suddenly and permanently lose mental capacity? I could not find any good statistics on that. The best that I could find was statistics for DoLS which stands for stands for Deprivation of Liberty Safeguards. This is a statutory framework in England and Wales that protects people in care homes and hospitals from being inappropriately deprived of their liberty.

* There were an estimated 332,455 applications for DoLS received during 2023-24,
* 56% of applications were not completed because the patient recovered.
* Approximately 58% of DoLS applications relate to people over 74.
* In 2023, the UK had approximately 5.4 million people aged 75 or older.

Those numbers imply that about 4% of over 74s have successful DoLS applications. Some of those will have had forewarning and could have taken financial action at that stage. Others will recover their mental capacity. Mental health problems are common, but sudden and permanent loss of mental capacity does not look particularly likely.

In my very limited experience, a slow decline in cognitive abilities with old age can be greatly exacerbated by a bad fall. It seems the general shock, hospitalisation, drugs  etc can reduce mental capacity significantly overnight.

GeoffTF

Albermarle said:

GeoffTF said:

Brie said:

Does someone else know how to access your account should you be unable?  This was one of the questions that was discussed when I was trying to line up an IFA (2 years on with little luck).  Basically - if you get hospitalised or similar and needed some bills paid could someone get money in to your account and off to wherever.  It's a case of someone have an POA plus knowing all of what you have going on.

How likely is it that someone will suddenly and permanently lose mental capacity? I could not find any good statistics on that. The best that I could find was statistics for DoLS which stands for stands for Deprivation of Liberty Safeguards. This is a statutory framework in England and Wales that protects people in care homes and hospitals from being inappropriately deprived of their liberty.

* There were an estimated 332,455 applications for DoLS received during 2023-24,
* 56% of applications were not completed because the patient recovered.
* Approximately 58% of DoLS applications relate to people over 74.
* In 2023, the UK had approximately 5.4 million people aged 75 or older.

Those numbers imply that about 4% of over 74s have successful DoLS applications. Some of those will have had forewarning and could have taken financial action at that stage. Others will recover their mental capacity. Mental health problems are common, but sudden and permanent loss of mental capacity does not look particularly likely.

In my very limited experience, a slow decline in cognitive abilities with old age can be greatly exacerbated by a bad fall. It seems the general shock, hospitalisation, drugs  etc can reduce mental capacity significantly overnight.

All the more reason to be lean and fit in old age. What the statistics do not adequately capture is the health status of individuals. In my experience of elderly walkers it is the women and overconfident men who get broken bones. None of them has had mental health problems as a result though.

boingy

No, you don't need to be paying an IFA any longer. You probably could have got rid of them earlier and saved even more money. 

dunstonh

boingy said:

No, you don't need to be paying an IFA any longer. You probably could have got rid of them earlier and saved even more money. 

Assuming that DIY would have resulted in a better outcome.  Something none of us can be sure of.

Nebulous2

Albermarle said:

GeoffTF said:

Brie said:

Does someone else know how to access your account should you be unable?  This was one of the questions that was discussed when I was trying to line up an IFA (2 years on with little luck).  Basically - if you get hospitalised or similar and needed some bills paid could someone get money in to your account and off to wherever.  It's a case of someone have an POA plus knowing all of what you have going on.

How likely is it that someone will suddenly and permanently lose mental capacity? I could not find any good statistics on that. The best that I could find was statistics for DoLS which stands for stands for Deprivation of Liberty Safeguards. This is a statutory framework in England and Wales that protects people in care homes and hospitals from being inappropriately deprived of their liberty.

* There were an estimated 332,455 applications for DoLS received during 2023-24,
* 56% of applications were not completed because the patient recovered.
* Approximately 58% of DoLS applications relate to people over 74.
* In 2023, the UK had approximately 5.4 million people aged 75 or older.

Those numbers imply that about 4% of over 74s have successful DoLS applications. Some of those will have had forewarning and could have taken financial action at that stage. Others will recover their mental capacity. Mental health problems are common, but sudden and permanent loss of mental capacity does not look particularly likely.

In my very limited experience, a slow decline in cognitive abilities with old age can be greatly exacerbated by a bad fall. It seems the general shock, hospitalisation, drugs  etc can reduce mental capacity significantly overnight.

That situation is more complicated than that.

People with cognitive decline can be good at hiding it. A reluctance to speak about specifics, or answer specific questions, but a willingness to discuss generalities can be a clue. Relatives often don't see it, partly because they don't want to see it.  Remove the person from their normal surroundings and routine, and that ability to cover up falls apart and it looks like there has been a sudden dramatic decline. In fact its only the decline that was already there coming out into the open. 

Going into hospital for a routine operation, like a cataract operation, can do the same, it doesn't have to be a trauma or a fall. 

Then there are transient conditions, like those caused by a urine infection. I was once made aware of a situation where a woman became confused as a result of a urine infection and one of her offspring took control of her finances under power of attorney. Once the urine infection was resolved and the person had regained capacity, the adult child refused to relinquish control. 

A traumatic brain injury is the main reason I can think of for sudden loss of capacity. These are more common in males, particularly younger males, as they are more likely to engage in risky behaviour, such as driving too fast, that can lead to a head injury. They could be as the result of a fall in older people. 

It doesn't really matter how common it is, its very difficult if it happens to your family. There are regularly people who don't put a POA in place, discover it is too late, and have to go through an expensive and time-consuming court process instead.