Increasing awareness among younger generations about future planning has led to a rise in powers of attorney registrations.
- Data shows a significant growth in power of attorney applications across the UK, surpassing a million in 2023.
- This trend is partially driven by the ageing population and a rise in conditions like dementia.
- The Covid-19 pandemic has shifted attitudes towards future planning, influencing younger people to secure their affairs.
- Experts stress the importance of regularly reviewing appointed individuals in powers of attorney to avoid future disputes.
A growing awareness among the younger generation regarding the importance of future planning has resulted in a noticeable increase in powers of attorney registrations. Data reveals that power of attorney applications in the UK exceeded a million in 2023, reflecting a broader societal shift towards ensuring affairs are in order sooner rather than later.
The surge in power of attorney applications is attributed to several factors, including the country’s aging population and an increase in dementia diagnoses. Final Duties reported a 33.3% rise in applications in 2023, marking a continuous growth trend over the past three years, with previous increases of 19.1% in 2022 and 5.5% in 2021. The pandemic has further influenced this change, encouraging younger demographics to take control of their estate planning.
Laura Pang, a senior associate solicitor at Irwin Mitchell, has observed that the younger generation is increasingly looking to secure their future affairs. A noted change in attitude is backed by data from Farewill’s 2022 “Year in Wills” survey, which highlighted that the number of wills written by Generation Z doubled, and the number of millennials writing wills rose by 6% from 2021.
The sentiment expressed by Laura Pang reflects a broader societal change in how people perceive the necessity of managing their estates proactively. The Law Gazette reported a 75% increase in will enquiries during the pandemic, as individuals sought to mitigate potential disputes and account for changes in assets and liabilities.
The Office for National Statistics census data from 2021 supports this trend, showing an increase in the population aged over 65, from 16.4% to 18.6% between 2011 and 2021. Additionally, research from Alzheimer’s Research UK highlights a rise in dementia cases from 829,000 in 2018 to 944,000 in 2021, with an expected climb to 1.1 million by 2030 and 1.6 million by 2050.
Jack Gill, Managing Director of Final Duties, notes the demographic shifts within the population, particularly among the baby boomer generation, as a significant factor contributing to the increase in power of attorney applications. The rise in dementia prevalence necessitates timely planning, as more individuals seek to appoint trusted individuals to manage their affairs.
The growing trend towards early future planning among younger generations highlights a shifting societal focus on ensuring arrangements are in place for possible future uncertainties.
