We often set up financial arrangements but then forget to review them over the years.
This might include things such as superannuation, house mortgages, life insurance and financial support of dependent children.
If we lose capacity for whatever reason it will be too late to review these things. Many individuals and their families have suffered because of this. It may be a superannuation policy that had more supportive options that were not chosen; a health insurance policy that does not cover a condition that the person was likely to develop; or an employment, house or life insurance policy that had not been updated.
Financial planning is an important part of planning ahead, especially as a person reaches retirement age. There can be important decisions such as when to retire, selling of assets, pension eligibility or going into a residential aged care facility. You may need to make provision for changing accommodation or care needs, as well as for other people who are still financially dependent on you.
Planning ahead allows you to organise your finances so that you and important people in your life can get maximum benefit from your financial resources with minimal complications.