As I've just successfully gone through the Society of Later Life Advisers (SOLLA) Accreditation process, we have all been copied in on this disturbing article.
The Daily Mail - This is Money section - recently publised an alarming article about how elderly clients are being ripped off by unscrupulous salesman, masquerading as "advisers".
"A fear of dying or going into care has spawned a growing and, as Money Mail has uncovered, disturbing industry.
Unscrupulous financial advisers are getting away with fleecing vulnerable pensioners — often for their entire life savings. Sam Dunn and James Salmon investigate.
Going into care can be a stressful time for those moving into a home. It can also be a huge strain on families, who have made the heart-wrenching decision that their parent, or elderly relative, is no longer able to look after themselves. But this also makes pensioners vulnerable to unscrupulous salespeople.
These vultures play on their fears of selling the family home, or seeing it snatched by the council to pay for care costs, or of dying without a will, or leaving the family with huge funeral costs.
A major part of the problem is the sky-high cost of care homes and the worry families have about how this will be paid for — and whether you can get financial help from the State. On average, care home fees are £2,163 a month"
The article goes on to list several suspect ways elderley clients can be easily fooled into accepting bad advice.
- CARE FEES AVOIDANCE SCAMS
- POOR VALUE FUNERAL PLANS
- PRICEY INHERITANCE TAX COVER
- RIP-OFF WILL-WRITING SERVICES
The article then asks the question:
WHO CAN YOU TRUST?
Whether it’s funding care home costs, taking enhanced annuities, using equity release, or even deciding on savings bonds, many feel unable to trust a financial institution with their money. A good place to start is the Society for Later Life Advisers at www.societyoflaterlifeadvisers.co.uk or phone 0845 303 2909.
On top of having to have specialist qualifications, its members have also undergone further testing to be accredited. Before seeking advice, always check the adviser’s qualifications.
When discussing long-term care, they should hold one or both of the following two qualifications: the Certificate in Long Term Care Insurance (CF8) or the more advanced Long Term Care, Life and Health Protection (G80). If considering equity release, where money is taken out of a house using a type of mortgage, the key qualification is ER1. If possible, ensure a relative — and someone who understands what is being said — is always in the room when advice is given.
Ask sensible questions, such as does the product use up all of the person’s available cash? Is there any left over, and is it easily accessible? How much capital will the investment eat up? How much income is it expected to generate? What if the capital falls, is any of the money guaranteed?
Don’t worry if it takes time to understand what you’re being sold. If neither you, nor your family member, has understood the adviser’s explanation, ask again until you do — if they haven’t made themselves clear, it’s not your fault, it’s theirs.
And don’t forget Money Mail’s three golden rules of investing:
- Don’t put all your eggs in one basket.
- Take less risk as you get older.
- And don’t lock up your money if you need it.
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