Planning for complicated lives 

The way we live is changing and for most people it is becoming more complicated. For example, 'boomerang kids' are much more common - those are adult children who leave home and then return, typically when times get tough. Nearly a third of men and a fifth of women aged 20 to 34 live with their parents, according to government figures.' 

Meanwhile, although the figures for divorce are at their lowest for over 20 years, that is mostly because far fewer of us are marrying in the first place. The number of marriages in the UK in 2007 (the most recent statistics) stood at 270,000 with figures for England and Wales the lowest recorded since 1895.2 When we do marry, it is generally much later in life, in our 305 rather than our 205, and more of us are delaying parenthood. 

These marked changes in the way many of us are now living have a major impact on personal financial planning, which needs to be flexible enough to take these new patterns for families into account. Here are what we believe to be four key things to consider:
 
• Build up some short-term savings for yourself. Don't depend on the availability of debt. You never know when you might need to draw on savings: separation, divorce, unemployment, illness or the non­appearance of an expected bonus.
 
• Make sure you have enough life assurance cover and that it is arranged so that the potential beneficiaries can be changed as circumstances alter over time. You will need both the cover and the trust wording to be flexible.

• Avoid expensive consumer debt and have some insurance that pays out if you fall seriously ill; the state does not provide generous sickness benefits. 

• Don't depend on your spouse or partner to do all the saving for retirement; it is a high­risk strategy. By retirement you may not be together; they may not save enough for both of you and, in any case, it is generally much more tax-efficient for each partner to have their own source of retirement income .
Versatile and flexible arrangements, coupled with competent professional advice, should help you keep complex family finances running smoothly. 

1. Source: www.statistics.gov.uk
2. Source: www.statistics.gov.uk