Living longer: making the most of later life

Living longer is, in many ways, a gift. A longer life can mean more time with family, more choice over how you live, and more opportunities to enjoy what you have worked hard to build. But a retirement that lasts 20 or even 30 years needs a different sort of plan. This is especially true for women, who are more likely to outlive their partners and to find themselves making major financial decisions later in life.

I often see women arrive at later life with plenty of life experience but unanswered questions about how long their money really needs to last. Financial planning can go a long way towards providing confidence and clarity. What it cannot do is tell you how long you are going to live, or exactly what later life will look like.

What we do know is that women tend, on average, to live longer than men. Current UK life tables show life expectancy at birth of around 79 years for men and 83 years for women. By the age of 65, a common point for retirement, men can expect to live for roughly another 18 years, while women can expect closer to 21. These are only averages, and they hide a wide range of outcomes. Women also significantly outnumber men among those living into their nineties and beyond.

For financial planning, that longevity matters. A retirement that spans decades often includes different stages of life with different needs, priorities and costs.

A longer life can bring greater responsibility

Having more time is something to welcome. It may mean watching children and grandchildren grow up, pursuing interests long put to one side, and living more on your own terms. But for many women, longer life can also bring a shift in financial responsibility.

We often focus on wealth being passed down the generations, with inheritance tax a key concern. In practice, however, there is often an earlier transfer that deserves attention. In many couples, though certainly not all, assets and responsibility for managing them pass to a surviving partner after a bereavement. This can mean pensions, investments, savings, property or even family land moving into sole ownership at a very difficult emotional time.

Even where finances were previously shared, suddenly being the only decision maker can feel daunting. This responsibility may arrive alongside grief and change, and often at an age when energy or confidence does not feel quite the same as it once did.

Managing wealth at a complex point in life

This challenge does not affect widows alone. Any woman approaching later life faces important questions about how to use her wealth to support both independence and peace of mind in the years ahead.

Planning at this stage can feel particularly difficult because the future is uncertain. Health can change gradually or suddenly. Priorities often shift over time. Activities that define an active early retirement may eventually give way to a slower pace of life, with different practical needs.

Funding later life therefore needs to be flexible. Paying for travel and hobbies is very different from meeting the costs of long-term care. For those funding care themselves, residential care costs can exceed £1,000 a week, with nursing or specialist dementia care costing more. These figures can feel abstract until they become personal.

A good financial plan aims to allow enjoyment and freedom while building in resilience for the years when life becomes less predictable and often more expensive.

So, what actions can women take?

The first thing to say is that no one needs to work through these questions alone. A key part of good financial advice is helping women feel informed, supported and confident about their choices, whatever their age or stage of life.

An adviser’s role is not to take decisions away, but to help you understand your options and think through different scenarios. Together, you can build a plan that balances spending, saving, investing and eventually passing wealth on, while retaining flexibility.

For some women, this means keeping a dedicated cash reserve specifically for potential care costs. Others choose to moderate spending or slow gifting, ensuring their own security comes first if circumstances change.

Property often plays a significant role. If care is needed later on, downsizing or selling a main home can release funds. This can be a sensible solution, but it is rarely just a financial decision. Homes carry memories and meaning, so any decision should be taken carefully and without pressure. In some cases, adapting a home to make it safer and more manageable can allow someone to remain independent for longer while also reducing overall costs.

There is no single right answer. What matters is understanding the choices available and making them in a considered, unhurried way. Our guide, Widowed, not defeated, is designed to support women navigating bereavement while making calm financial decisions for the future.

Explore here: Widowed, Not Defeated | Charles Stanley

Powers of attorney and planning ahead

There is also a very human side to later life planning. Women are more likely to live to ages where conditions such as dementia become more common. That makes the legal framework around decision making particularly important.

A lasting power of attorney allows you to choose someone you trust to make decisions on your behalf if you ever lose mental capacity or feel unable to manage matters yourself. Typically, there is one for property and financial affairs and another for health and welfare.

Many people put this off, particularly if they feel well and positive about the future. That is understandable. But thinking about these matters early gives you control over what you would want, rather than leaving decisions to be made in a crisis.

This does not need to be formal or daunting. It might start quietly, perhaps with a cup of tea, reflecting on what matters to you and how you would like things to be handled if your health were to change.

You might consider questions such as:

• What sort of care would feel right for me
• Who would understand my wishes best
• Would I prefer to stay at home for as long as possible

These conversations can feel difficult, but they are usually far easier when they happen in advance and on your terms, rather than in the aftermath of a health event.

Living well for the long term

Living longer brings financial questions, but it is also very good news. It can mean more time to learn, to contribute, and to enjoy the freedom that later life can bring. With thoughtful planning, longevity does not need to feel like a risk. It can feel like an opportunity.

The aim is to have confidence that your money can support you through different stages of life. Confidence that your wishes are understood. And confidence that what you pass on will be handled in a considered and tax efficient way.

If these ideas resonate, you may enjoy our International Women’s Day article on reclaiming your financial self. To speak to a financial adviser about any of the topics covered here, and to plan ahead with clarity and confidence, please contact me.

Read more: International Women’s Day – Reclaiming your… | Charles Stanley