Seventy-two per cent of active savers over the age of 65 do not have Power of Attorney (PoA) arrangements in place in the event they cannot handle their own financial affairs, research from Paragon Bank has revealed.

Older savers were 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.

Paragon’s findings, based on a study of over 1,500 savers, found that younger age groups fall away significantly – with just one in four (10%) savers aged between 55 and 64 having a PoA.

The main reasons cited by those without a PoA included 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 were most likely to select a child or children to be their attorney, selected by 52%, followed by a spouse (43%). Meanwhile, 6% of savers had chosen a professional, such as a lawyer or accountant, with a similar proportion also choosing a sibling. A smaller proportion chose a friend (4%).

Savings service delivery director, Paragon Bank, Chris Williams, 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.”

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