Planning Ahead: Why a Lasting Power of Attorney Matters in Retirement

While this article doesn’t serve as financial advice, we do want to share some helpful and objective information to give you a clear overview of what an LPA is and why it might be a valuable step in your retirement planning.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney is a legal document that allows you to appoint one or more people you trust, who will be known as your attorney, to make decisions on your behalf about financial or health matters, as well as any care preferences. Your attorneys would only make these decisions if you’re no longer able to do so yourself due to illness, accident, or age-related conditions like dementia.

There are two types of LPAs:

1. Property and Financial Affairs LPA
   This allows your attorney to manage your finances, including paying bills, handling bank accounts, collecting pensions, and even selling your home.

2. Health and Welfare LPA
   This covers decisions about your daily care, medical treatment, and living arrangements. It only comes into effect if you lose the capacity to make these decisions yourself.

While it’s good to consider LPAs before retiring, you can set these up well into your retirement years too. However, an LPA must be made while the you still have mental capacity. If you wait until capacity is lost, the court must appoint a deputy instead and this can prolong the process.

Common assumptions about a Lasting Power of Attorney 

There are some common misconceptions about LPAs and decision-making which you can delve into full detail on the government website. In the meantime, here is a list of the most common assumptions people have:

 1. If I appoint my partner, will they then make all the decisions 

The LPA only allows your attorney to act if you choose to let them or if you lose mental capacity. Until then, you make your own decisions. Your attorney's powers are limited and defined, and they cannot act outside these boundaries; they are also legally bound to act in your best interests.

You can appoint more than one person as your attorney with an LPA, which can be beneficial to safeguard your interests and ensure decisions are made responsibly and in line with your wishes.

2. I don’t need an LPA, I have a Will in place 

A Will is important, but only takes effect after death. LPAs are essential for managing affairs while you're alive but incapacitated.

3. I don’t have a big estate, so I don’t need a LPA

All homes count, and decisions will need to be made on your behalf, no matter if your estate is big or small. Without an LPA, no one can sell your home or handle your bills without court intervention. An LPA can simplify this process if the situation should arise.

4. Is an LPA active immediately

As mentioned, there are two types of LPAs. A Health & Welfare LPA only comes into effect when capacity is lost, and a Property & Financial Affairs LPA can be limited to operate only after registration.

5. I’ll give away all my decision-making power and lose independence

An LPA shouldn’t be viewed as a takeover and instead as a safety net with specific conditions. Attorneys can only act in the areas you’ve authorised and must follow the rules closely.

Why consider an LPA as part of your retirement planning?

As we age, the likelihood of losing mental capacity increases, but it’s not just age. Unexpected events, such as accidents or sudden illness, can also leave us unable to make decisions.

Without an LPA in place, your loved ones may need to apply to the Court of Protection to manage your affairs. This process can be lengthy, costly, and stressful.

Having a Lasting Power of Attorney already in place ensures:

• Your wishes are respected
  You choose who makes decisions for you and what powers they have.

• Continuity and peace of mind
  Your affairs can be managed quickly and smoothly if you’re unable to do so.

• Protection for your family
  It avoids legal delays and uncertainty during difficult times.

How to set up a Lasting Power of Attorney 

You must have mental capacity at the time of setting up an LPA. That’s why it’s important to act early, before it’s needed.

If you’re considering setting up an LPA, you can either make the arrangements yourself or seek advice from a solicitor or a specialised advisory firm. Learn more about arranging an LPA yourself in the Money Saving Expert overview or the resources created by the Age UK charity.

Things to consider about Powers of Attorney 

Different Powers of Attorney (POA) exist depending on your location. For Scotland, visit the Office of Public Guardian; for the rest of the UK, refer to the UK Gov website and for Ireland visit Citizens Information.

These resources feature official information on POA types, how to set up a POA, choosing your attorney(s), what life changes you need to report, and how to end your POA.  

Pure Retirement's policy on Power of Attorney can be found in our FAQ section>

How much do Powers of Attorney cost? 

Registering your POA does come with a fee. The registration costs vary and can include additional costs for certified copies or an audit of accounts, so do be sure you’ve visited the official government websites to get a clearer idea of potential costs. You may be able to apply for the reduced fees.

To give you a rough idea of the cost, the registration fee for a single LPA is currently between £92 and £96, depending on your location (accurate as of the 17 November 2025 update).

Please refer to the Gov.UK website for the UK, and the MyGov Scot if you live in Scotland and Citizens Informationin Ireland. You can ask an independent solicitor or specialist advisory firm for more information, and please note if you do use a solicitor or firm, there will also be legal fees to take into account.  

Further reading for your retirement planning 

Setting up an LPA gives you peace of mind and ensures your wishes are respected if life takes an unexpected turn. Planning ahead isn’t just about pensions and savings but about protecting your future choices. For more insights, take a look at our blog articles on common misconceptions about equity release and releasing equity to pay for care.