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- Did You Know?

July - September 2017

Did  you know that 35% of the world’s wealth is owned by just 1% of the population and that even if you are on the breadline in the UK, you are still in the top 14% of the worlds wealthiest people. So why doesn’t it seem like it?

When we consider just how poor many parts of the world are and the poverty faced by others we should be thinking how lucky we are. And in truth perhaps we do sometimes, especially when we see the famine in war torn countries on the news. 

Our own issues whilst pitiful in consideration are still relevant to our own circumstances. Maybe there are more days in the month than our salary covers, or our pensions are too small to allow us to retire early from the stress of the job.


Or maybe we just think the above is true and we don’t know what to do about it.

Every day I see clients, I am surprised by how I am able to help them see things differently and often I am the bearer of good news. 

Seeing Things Differently 
Employers must dread their staff seeing me, because I can often find a way for clients to retire early or to achieve their big desire. 

Beacon advises clients of all ages, but whilst I have several young entrepreneurs, most of my personal clients are over 50.


The majority of those seeking advice under the retirement age don’t know what pensions are invested in, and some even have cash ISA’s, whilst many of my older clients are over state retirement age, have more than sufficient money to last their lifetime, but are reluctant to spend having spent all their life saving. 


I help find that happy medium; after all whilst you can’t take your money with you, you don’t know how long you will need it and whether care fees will become relevant.


Care Homes
On the point of care fees, you will often read about the average time in a care home being 10 – 15 years, and costs £500k - £800k.


The reality, using Bupa’s data in 2011 according to the London School of Economics between 2008– 2010 states the average length of stay was 801 days, with half lasting less than 462 days. Only 55% survive more than one year and costs usually total less than £85k.

I agree this is still a lot of money and that if you need care you may need more, but taking off the £85k as well as the amount received from state and private pensions, the actual cost suddenly doesn’t seem so scary, and is more manageable making it easier to be considered within a financial plan. 

Your Expiry Date
If you knew the expiry date of your birth certificate and the quality of the life you will enjoy, planning would be easy and whilst provisions and planning need to be put in place, you should live for today in a sensible way and plan for tomorrow. 


Google advises us that the average life expectancy is 81, however, The Office of National Statistics is perhaps a better guide, pointing out that your average life expectancy depends on your age now. 


Assuming you are 65, then for a man it is 86, and for a woman it is 89. For women of 65 there is a 1 in 4 chance of reaching 96, and 1 in 10 chance of reaching 100. Clearly if you are looking to plan how long your money will last 81 may not be very appropriate.

There will be many variables in real life and much will depend on whether you wish to leave any money when your birth certificate expires. To find out if you can reach your retirement goals, contact your independent financial adviser and ask for a review.

Tony Larkins

Further Details:
Should you require financial assistance for pensions, savings, investments, mortgages, protection, long term care, employee benefits... contact the team at Beacon Wealth Management Ltd. 



Tel: 01480 869466

Facebook: /BeaconWealthManagement

Twitter: /BeaconWealthIFA


The Old Chapel, Thrapston Road,

Kimbolton, Cambridgeshire, PE28 0HW