I have made good provision for my pension
When we start out on our career, pensions and retirement can seem a long way off! But the earlier we start to plan financially for our later years, the more time we have to build a pension and/or savings pot to supplement the state pension.
You may be fortunate to have a private pension or have been automatically enrolled into a work scheme. It is well worth keeping watch on how these pension ‘pots’ are doing and review whether they will give you financial flexibility and options when you wish to step back from full time employment.
If you are in a position to do so, using an independent financial adviser can be helpful. It is also worth checking your national insurance record and state pension forecast which can be done at gov.uk.
Further useful information can be found at:
We discuss succession openly and have an agreed plan
Succession planning is vital for any business but can be particularly challenging on a family farm. A high percentage of calls to FCN have an element of succession and family relationship difficulties at their heart. Expectations passed through generations and unmet aspirations of the younger generation hoping to take over the farm, mean that complexities exist on all sides.
A succession plan will look different for every business, but there are some consistent factors that may help guide the process:
- Start early
- Ensure everyone involved has their say (using a third party mediator/facilitator can help)
- Make honest self appraisals about future hopes and fears
- Be realistic about the business and what people are prepared to do
- Consider roles and levels of ownership
- Keep talking and review the plan regularly
- Take professional advice if you can
I have registered a will and made my wishes known to family
Another frequent cause of stress in farming families can result where someone hasn’t made a will and been clear about their wishes when they die.
It’s a difficult subject to broach, and consequently assumptions can be made about succession, inheritance and other matters that may not match what has been written in a will. This can then lead to disputes in families and additional stress for the family at what is a difficult time.
Ensuring that we have an up to date, registered will in place can make things easier for those we leave behind and if possible it is best to let your family know about your plans so there is clarity on what they can expect and remember to update a will following divorce.
I have set up power of attorneys for finance and health
As well as having a will in place, which comes into effect after we die, it is important to consider how you would like decisions made for you should you lose capacity to do so yourself. This may be due to an accident for instance or failing physical or mental health. A Lasting Power of Attorney (POA) can formalise this.
There are two types of POA, one covers property and finance and the other relates to health and welfare.
If you haven’t got a POA in place, we strongly recommend looking into this. It is possible to register a POA oneself, although taking professional advice (if possible) may be beneficial.
I have a plan for how I will reduce my workload when necessary
Farming is more than just a job – it’s a way of life, especially here in Wales. Retirement from farming may look different for some, as the connection to the land runs deep. Staying engaged with the industry we love is important for our wellbeing, but as we age, the physical demands of farming can become harder to manage.
FCN frequently hears from older farmers in Wales, where health issues impact their ability to carry out daily tasks like feeding livestock, leading to concerns about their fitness and energy. These challenges often worry family members, too.
Rather than waiting for difficulties to arise, it’s wise to review workloads and have open conversations with family about adjustments that work for both you and the farm. Approach this as a positive transition, planning ahead to stay involved in a way that suits you and the business.
I (will) keep active in later life
Maintaining a reasonable level of physical fitness will mean we can keep active on the farm for longer. This doesn’t have to be running marathons (but great if you do!), just giving thought to how to maintain muscle mass, strength, balance etc. It’s also important to stay connected and the great thing about agriculture is the number of shows, events and other opportunities to meet with others.
I invest time to keep learning
Every day is a school day’ and however long you have worked in farming, there is always something new to learn, or opportunities to share knowledge that you have with others. Never stop investing time in being inquisitive – it keeps our minds active and ensures we stay connected with others
I have interests off the farm
Farming interests and hobbies are often closely connected to the communities we live and work in, whether through shooting, hunting, Young Farmers Clubs (YFC), or local agricultural events. These activities are great for our health and well-being, providing social connection and a sense of belonging.
However, it’s also important to take time away from the farm when possible. Spending time with friends outside of farming can help broaden our perspectives, bring fresh ideas, and enrich our lives beyond our daily work. Finding balance between farming life and other interests can be beneficial for both our well-being and our business.
I work to provide opportunity for the next generation
We have already covered the importance of succession planning to ensure a farm business is sustainable and your own workload becomes , but encouraging young people and new entrants into our industry in a wider context is so important. Finding opportunities to offer apprentices or other employment in your business for a younger person can also be hugely rewarding for you.
I have considered later life care costs and taken steps to plan for this
At FCN we regularly take calls relating to the challenges of care provision for an older family member. These calls are often received at the point when care is needed and the reality of costs and legal issues become evident.
With more people living longer, it is very important to give thought to the likelihood of care provision well in advance of when it may be required, considering financial planning and also implications relating to property ownership, partnership agreements and other legal matters.
