Older accountants have not planned properly for retirement

The Chartered Accountants Benevolent Association says that debt laden older accountants are finding themselves in financial difficulties because they have not planned sufficiently for their retirement.

Many ‘Baby Boomer’ accountants are approaching retirement age and you would have thought that they would have made provisions for this as they provide advice to other on this issue.

A spokesperson for the CABA said recently that chartered accountants are good at hiding the fact that they are in debt. Once they turn to the Association for help, a lot are in horrendous trouble, sometimes with debt piled upon debt.

The CABA provides support for members of ICAEW and has noticed a worrying trend in debt during the first half of 2011. Some of these are contractor accountants with large mortgages who now have to continue working instead of retiring.

The debt advice team at CABA also discovered that asset rich accountants were reluctant to realise their assets to pay off their debts.

We have passed the stage where many accountants were made redundant but a lot still have to adjust to a lower standard of living than they experienced before the recession started. The CABA has already handled 112 debt enquiries and dealt with 56 clients with debt issues this year.

The team at CABA has also received an increasing amount of queries surrounding bankruptcy and Individual Voluntary Arrangements. Helena Coxshall explained that accountants are worried about how these would impact their professional status. However, in most cases, issues like this can be avoided and CABA’s experts will sit down and produce a long term financial recovery plan with the accountant so that they can continue working.

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