Most over-40s yet to arrange power of attorney, study finds

Seventeen per cent of UK adults over the age of 40 have appointed a power of attorney (POA) in place, new research by Canada Life has highlighted.

The firm suggested the figure is both “worrying” and “problematic”.

A POA is a legal process whereby an individual appoints another person to formally act and make decisions on their behalf should they become incapacitated, or unable to do so.

The most common arrangement, a lasting power of attorney (LPA), is when an individual may make decisions on behalf of another for financial decisions, health and care or both. One in 10 (10%) respondents from the Canada Life research chose this type of POA.

For those who had not appointed a POA, common reasons for not doing so were from people suggesting they had “full mental capacity” (32%) and because they’d “never thought about it” (30%).

Technical specialist – tax, trusts and estate planning at Canada Life, John Chew, said: “It is worrying that very few people have appointed a POA, and it is furthermore problematic that many believe that having full mental capacity is a good excuse to put this off.

“In reality, if you get to a stage where you are incapacitated then it will be too late, and the Court of Protection will appoint someone on your behalf. This is why it is essential to start the process when you are in good health and can make your own decisions.”

Canada Life found that for over-40s who had appointed a POA, the most common reason cited was because these individuals “did it at the same time as making a will” (39%).

“Living longer can be a great advantage – but it also brings important responsibilities,” Chew added.

“Estate planning should be a key part of preparing for later life, including appointing a POA, writing a will, and having honest conversations with loved ones about end-of-life wishes and the management of assets. Taking these steps early can ease future burdens and ensure your intentions are clearly understood.”



Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.

Air and the role of later-life lending
Content editor at MoneyAge, Dan McGrath, spoke to the chief executive officer at Air, Will Hale, about the later-life lending industry, the importance of tailored advice and how technology and obligations have shaped the sector.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.