BR report 2018

6 7 Estate planning has always been an important area for older clients and their families. Complexities such as the increase in blended families through second marriages, and the rise in divorces of the over 60s, make this even more important to discuss. Society continues to age: ONS statistics estimate that 18% of the population was over the age of 65 in 2016 and by 2046 it will be almost 25%. Recent research by The Telegraph revealed that the cost of care over the last 20 years has risen by twice the rate of inflation, and that dementia- related disability will put added strain on government funded social care over the next decade. It’s worth noting that 50% of 30 year olds today are expected to live to 100. These statistics reveal a need for an effective and well-funded retirement, as judging longevity is not a perfect science. Clients still want to see a level of growth in their capital and income for a much longer period, whilst ensuring they do not completely run down their resources and leave a legacy. All of these factors, plus others such as income needs and health, should be considered when it comes to later life planning. Incorporating flexibility is key as well as weighing up the risk of running out of money against leaving an estate that incurs a large inheritance tax bill. Last year’s BR Industry Report revealed that HMRC collected the highest ever annual IHT intake in 2015/16. As forecast, that record was broken in 2016/17 and, according to the ONS, will continue to do so over the next decade. Later life advice needs to integrate all of these conflicting considerations that require skilled and knowledgeable accredited advisers that understand the full range of options available, including those outside of the more traditional gifting and trust methods. Both the speed and flexibility offered by BR make it a useful resource for advisers in this market. This latest report covers developments in BR and analyses the current market metrics to give a useful overview of fees and charges as well as open discussion about past and future market movements. TISH HANIFAN & JANE FINNERTY Joint Chairs of the Society of Later Life Advisers (SOLLA) OPENING STATEMENT A WORD FROM TISH HANIFAN & JANE FINNERTY We couldn’t do this without the help and support of a number of third parties who have contributed to writing this report. Their contributions range from inputting into the scope, sharing data, giving us their insights into the market, providing copy and peer reviewing drafts. Some of them have inputted directly and some of them were kind enough to share their thoughts and ideas over coffee or at various conferences and events. So, a big thanks to: Andrew Tustin, Belinda Thomas, Carl Hanson, Catriona Lumiste, Dominique Butters, Fiona Graham, Gillian Roche-Saunders, Jane Finnerty, Jeremy Goodman, Jessica Franks, John Cunliffe, Laurence Callcut, Sam Jermy, Sam McArthur, Simon Harryman, Tish Hanifan and Wesley Harrison. Their input is invaluable, but needless to say any errors or omissions are down to us. We have relied upon MICAP for most of the data that we have based the report upon. MICAP is part of the same group of companies as Intelligent Partnership. We also carried out our own extensive desk research by examining brochures, investment prospectuses, mystery shopping providers and crawling through websites to verify their data. The report is made possible by our sponsors, who have contributed copy to the report on pages 65 to 71 and supported us by helping to meet production and printing costs. So, a big thanks to Blackfinch, Downing Ingenious, Octopus Investments, Puma Investments, Time Investments and Triple Point. REPORT OVERVIEW ACKNOWLEDGEMENTS AND THANKS Understand the current political landscape within which BR sits Have an awareness of how AIM affects BR offerings and the types of AIM-quoted companies BR investments are made into Be aware of the key strengths, weaknesses, opportunities and threats currently in the EIS market Pinpoint recent changes to key BR investment metrics such as target returns, minimum subscriptions and strategies Be able to benchmark current products and providers against each other on key investment criteria Recognise how the adviser community is currently interacting with BR and its areas of confidence and concern LEARNING OBJECTIVES FOR CPD ACCREDITATION We are required to state these in order to qualify as accredited for Structured CPD. By the end of the report readers will: