The first report was by Price Waterhouse Cooper and it tracks life expectancy and projected pension ages.  People born in 1964 can expect to collect their state pension at 68 and to live to 88.  But people born this year may not be able to collect a state pension till age 77 although they will still enjoy twenty years of “retiral” with an expected age at death of 97.  And the report predicts an inexorable rise in both pension ages and life expectancy into the future.  Clearly “three score years and ten” is a somewhat outdated concept.

Just days after this report The International Longevity Centre published “Retirement in Flux” described as a “think piece”.  This is indeed a thought provoking document, which tracks the history of “retiral” from work with the expectation of a period of life thereafter funded by a pension.  This is actually a relatively recent development in our social history.  But the report argues that the concept of “retiral” as we now understand it is perhaps already obsolete due to the increased financial demands on state and citizens’ resources caused by increased longevity.  The institution suggests a fixed retiral date should go and the concept of gradual retiral should take its place – with the state and employers changing the current practice to make that possible.  But at the same time the report argues that older people should expect and be expected to contribute by staying in the labour market longer and being prepared to contribute from their own property wealth to paying for care costs for example.

David Borrowman, Senior Partner of Caesar and Howie comments “These reports are valuable in my view – even if they are a bit scary in some ways.  But really there is one simple message – families must plan ahead for the future – and you can’t plan early enough whether it be ensuring adequate pension provision or anything else.  Just on one issue we find for example that steps can be taken to mitigate payment of care costs – including protecting houses from being sold – but they must be taken early.  Too many house owners don’t think about care costs at all and how they might impact in the future on the house they own perhaps with their partner.  I just wish people would think about this in their middle age and come and see what simple planning can be done.  Waiting till someone has to go into care is too late”.

Home Reports were introduced by the SNP’s first administration in 2008, despite much criticism by many professionals in the residential property market.  Now the NEAE adds their voice to the criticism.  Their spokesperson for Scotland, David Mackie said “Home Reports are widely seen as an extravagance in Scotland; they haven’t had their desired impact and it’s not too late to suspend the scheme”.

Yet another voice criticising Home Reports comes as no surprise to Senior Partner, David Borrowman of Caesar and Howie.  “I welcome Mr Mackie’s comments – yet another sensible plea for removal of Home Reports.  If there is a way to ensure you get bad legislation on the statute book look at how Home Reports came about.  The government’s own trial failed miserably, then they listened to anyone except those professionals actually buying and selling houses.  Home Reports have caused increased costs and uncertainty for sellers and buyers as well, and their existence has caused the return of unnecessary multiple surveys.  That’s just daft.  The trouble is the government don’t listen – their constant comment that Home Reports are great and are here to stay couldn’t be bettered by a PR team for the North Korean government.  But it is hard pressed Scots paying hundreds of pounds more than they need to move house who are paying for this intransigence.  The English have ditched their similar scheme and so should we”.  

Yet behind all this doom and gloom the fact remains that all markets for assets trend up and down depending on supply and demand.  Since people live in houses there will always be demand for them – but now much of that demand is met by letting the asset – not buying.  However, it is just possible now to identify some signs that the popularity of buying rather than letting may be returning.

A recent Bank of Scotland survey found that there was “a considerable improvement” in affordability of houses in most areas of Scotland for key public sector workers such as nurses, teachers, police and fire fighters.

A further survey by the bank into confidence in the housing market showed a significant increase in the number of people believing house prices will go up in the next year.

On top of that the major Solicitors Property Centres – which sell most property in Scotland– report a modest increase in sales activity in the first quarter.

So perhaps for the first time in several years there is some modest evidence that the housing market is perhaps approaching a return to better times.  The next few months should tell if these “straws in the wind” turn into something significant.

Solicitors Caesar and Howie are ERSA members and Managing Partner, David Borrowman comments “These figures reflect what we are finding ourselves.  Both awareness of these products and demand for them seems to be on the increase and our Senior Issues team is working flat out to get money through for clients.  It was not always like this though and I think the current climate for pensioners – where finances just get more and more difficult – is the main driver of this increase.  If you are sitting with a lot of equity in your home, it doesn’t seem sensible to be short of money or deny yourself a good lifestyle in retirement, when unlocking some of the capital in the house could help so much.  We expect the sales of these products to just keep increasing actually”.

Equity Release products are now regulated by the Financial Services Authority and are generally sold through specialist brokers mostly using specialist solicitors for the legal work involved.  Caesar and Howie are the only Scottish members of the Equity Release Solicitors Alliance.

The thinking behind the new initiative is that a lot of harm to society arises from the taboo stopping us discussing death openly.  This harm manifests itself in many ways from the inability to communicate comfortably with a friend or work colleague, who has suffered bereavement – to families becoming involved in legal disputes because someone died without making a Will.  We even seem as a society to have difficulty communicating with people who are dying.  One terminally ill speaker, at the launch, explained how a number of her best friends had simply stopped contacting her once they know she was ill.

The new group believes that a new open approach, to death dying and bereavement, will hopefully help educate people to behave a bit differently and to deal better with all the issues involved round death, whether with friends or families or in the workplace.

Caesar and Howie support the aims of Good Life Good Death Good Grief.  Managing Partner David Borrowman commented “I think the group’s aims are laudable and cover many aspects of life.  But, just taking the legal issues involved there is no doubt whatsoever, that families cope much better with adverse events if some basic legal preparations have been taken.  Frankly, every adult should prepare a Will, a Power of Attorney and an Advance Directive, which is a statement of their treatment preferences in the last stages of illness.  If everyone were to take these simple and cheap legal steps much distress and difficulty and unnecessary expense for families would be avoided.  And remember, many pensioners in Scotland can get legal aid for Wills, Powers of Attorney and “living wills” so there may be no expense involved at all”.

Figures suggest that the new money available could help around 250 first time house buyers into the market.

David Borrowman, Managing Partner of Caesar and Howie, welcomed the announcement but suggests a sense of proportion be retained by all in considering the effect on the market.

David comments “Caesar and Howie favour the Lift scheme – we have introduced it to many of our clients and they have found it useful to them in getting a start on the housing ladder.  So it is good news if more money is going into LIFT – this is really a good scheme for young house buyers.  There are two things, however, which would make this scheme much more effective.  The restriction in giving these funds to tenants renting in the private sector should be removed.  Plenty of private tenants are desperate to buy and with private rents going up, this group may be needs more help than those tenants of social landlords – yet these tenants are given priority under the scheme.  Also the amounts of money going in are pretty limited.  The Scottish Government are right to look at ways of helping first time buyers.  When a first time buyer buys a property the seller usually buys a new property as well.  That means you could give the market a much needed fillip with this LIFT scheme.   But in all honesty at this funding level it is a bit like firing a couple of airgun pellets when you really need a barrage of artillery to get a result.  When the City ofEdinburgh District Council(of all institutions) can find £150 million to fund social house building this government investment of under £5m in LIFT looks feeble.  So I would say to Mr Brown – you are on the right track – but much more money please if you want to get the market buzzing again.

I try to encourage everyone to make these views clear and to take the basic legal steps they need to take, to ensure that family and loved ones better survive the adverse effects that death and serious illness bring to a family.  It really is simple – a couple of visits to a lawyer will be enough to get in place a power of attorney, a will and an advance directive – three vital “family care” documents all individuals should complete.  Very simply appointing someone to be your attorney by completing a power of attorney assures if you lose legal capacity through illness someone has legal authority to look after your affairs.  Without a power of attorney a guardian would have to be appointed in a court action which really should be avoided at all costs because of the stress and expense involved – the last thing any family needs when one family member has been struck down by serious illness.  Making a will ensures your property goes where you want it to go – not where the state says – which might not be what many people want.  For example, many folk don’t believe that a surviving spouse may not automatically inherit the family home – but that is the true legal position where there is no will.  Finally, an advance directive is a written instruction to your doctors and carers as to how you want to be treated in the last stages of an illness – when you are unable to communicate.  Spelling out your wishes to your family in advance like this gives them the confidence to make “end of life” medical decisions in accordance with your wishes – and spares family members the worry and possible guilt of perhaps feeling they had made a decision you might not have wanted.

It is just not difficult or expensive to get these documents in place.  And perhaps the best news is that probably about 70% of Scottish pensioners qualify for “Legal Advice and Assistance” which means they can get these documents done either free or at a subsidised cost.  That scheme can be easily accessed by people of pension age – in fact a telephone assessment can be done in minutes – so clients will know right from the outset whether they can get the work done free or at a reduced cost.

So please don’t put off decisions – get these basic family care documents in place.  Phone 01506 815900 for a legal aid assessment – it really is easy.

Many people seem to assume the best friend or spouse can carry on doing things for the ill person.  But the truth is in Scotland legally they can do nothing – yes nothing.  Even a spouse inherits no legal powers to do anything  for  an incapacitated partner.  This does not seem to be widely understood.  Where someone is so ill as to be legally incapacitated nobody has powers to do anything – unless these powers are granted by the local sheriff court following a court action – or unless some limited powers are granted by the Public Guardian – a public official responsible for a range of legal matters relative to adults with incapacity.  So sadly many families are faced with going to court to have the court give even a spouse powers to deal with the affairs of his or her partner – assuming say the partner is incapacitated by for example a stroke.

Going to court is a bit of a daunting prospect for anyone – and even more difficult perhaps when the family is dealing with the illness in the first place.

But the good news is – with just a little foresight and forward planning – all this hassle for families can be avoided.  That spouse\carer\ best friend can be legally appointed as the person’s attorney – provided the appointment is made before the illness causing the incapacity strikes.  Once appointed as attorney the best friend will have all the legal powers granted in the document appointing him or her  – which is called a Power of Attorney.  Usually that will mean the attorney will have automatically and legally all the powers necessary to look after and make decisions for the ill person. 

With so many of us living longer and experiencing debilitating illness it is just good sense to appoint an attorney.  It is actually a very easy process maybe needing one or two visits to a solicitor.  So make that friend\carer or spouse your attorney as well – it will save so much trouble should illness strike.  And the very best news for older people is that most pensioners – even householders with up to £25000 savings can still get legal aid to get their Power of Attorney put in place.

Did You Pass Your Driving Test Many Years Ago? Perhaps You Never Sat A Test At All? Do you Worry About Your Driving Now? Or Do Family And Friends Tell You Not To Drive?

Matchlight, (the Television Company that brought you, BBC1’s ‘Taking The Keys Away’) are making a new documentary series about driving. We’re working with the Automobile Associate (AA) for a Channel Five series and we’re looking for people to take part.

If you want some reassurance that your driving skills are still up to scratch, and if you fancy taking part in some fun, TV filming, then please get in touch.

Perhaps your family and friends constantly criticize your driving, or perhaps a few ‘near misses’ have caused you to be concerned about your driving techniques. Do you struggle to keep up with the fast moving pace of today’s road networks? Perhaps modern driving gets you down and you find yourself taking the bus more often, but you’re keen not to lose your independence. 

If you, or someone you know, might appreciate some help with driving, get in touch. 

We are looking for retired people, who might like to take part in a fun, and high profile, documentary series and improve their driving at the same time. Email me, telling me a bit about yourself on rosy.marshall@matchlight.co.uk or call Rosy on 0141 332 0319.