A third (34%) of active savers have not discussed how family or friends would support them as a power of attorney (PoA) if they were unable to look after their own financial affairs, Paragon Bank research has revealed.

The bank’s survey of over 1,200 savers found that just 40% have had detailed conversations on the subject.

Of those that haven’t raised the topic, 58% believe it is not necessary yet, while 17% avoid considering a future where they may lose financial independence. Almost one in 10 (9%) said they are unsure how to start the conversation.

Despite this, Paragon revealed that 43% of respondents already have a PoA in place, while 57% recognised its importance.

Furthermore, awareness of the implications of failing to arrange a PoA is high, with 90% of respondents acknowledging the challenges that loved ones would face without legal authority.

While awareness is high, 12% thought that a bank would appoint a PoA for the individual, with 60% correctly believing that a family member or friend would need to petition the court to be appointed.

Customer service director at Paragon Bank, Chris Williams, said: "It’s never too early to set up a PoA, regardless of age. Life is unpredictable and ensuring someone you trust can manage your accounts if you’re unable to is essential.

"We understand that discussing finances can feel uncomfortable, but it’s a practical step that prevents stress and confusion later. We regularly speak to families who face difficulties because PoA arrangements weren’t in place, and we cannot grant access without the proper legal authority. Sorting out a PoA is a sensible and pragmatic step."

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