Power of attorney and your pension
Feel reassured that help is at hand if you need someone to make financial decisions when you’re not able to.
What is a power of attorney?
A power of attorney is a legal document that lets someone you trust make decisions for you, if you ever need them to. It can last for as long as you need. The person you trust – your ‘attorney’ – can be a friend, family member or solicitor. They must be over 18 (or 16 in Scotland) and not bankrupt.
Your attorney can help with things like:
- Your health and care
- Your property and finances (like your pension)
You can have more than one attorney taking care of different things, but you’ll need to decide if they should make decisions together or separately.
Discover the various types of powers of attorney on the Citizens Advice website.
Why might a power of attorney be important?
A power of attorney can bring you and your loved ones peace of mind when you’re going through a period of vulnerability.
- It helps you put secure plans in place and is relatively inexpensive to create.
- You can set out how you want things to be done – for example, how your pension should be invested.
It's important to know that even if you’re married or in a long-term partnership, your partner would still need a power of attorney to manage your health or finances – including your pension.
When someone hasn’t created a power of attorney and can no longer make their own decisions, a ‘deputy’ might need to be appointed instead. This can cost more and take longer than creating a power of attorney.
Read more about becoming a deputy on the government’s website.
What is a letter of authority?
You can give someone permission to see details of your finances, including your pension savings, with a ‘letter of authority’ (LOA). This can be arranged between you and your spouse, partner, financial adviser, or any other third party.
An LOA is more limited than a power of attorney and doesn’t allow someone to automatically access to your money. However, it can be used when you want a person or an organisation to help you manage your bills or debts for a limited period. You must still be able to make your own decisions for it to work.
Give someone permission to view your pension details with our letter of authority template LINK. The authorisation lasts for two years by default, but you can specify a different period in the letter’s instructions.
How do you register a power of attorney?
A lasting power of attorney (LPA) is the most common type. It helps you plan for the future and must be registered with the Office of the Public Guardian. Find the instructions you need to register a lasting power of attorney on the government’s website.
An ordinary power of attorney is only used for a temporary period. It doesn’t need to be officially registered, but a specific form of words must be used. You can use a solicitor to help you do this.
Once you’ve created a power of attorney, get in touch to let us know. You can email info@peoplespartnership.co.uk or call us on 0300 2000 555.
More information
Learn more about making, registering or ending a power of attorney.
