Financial Records: What to Keep and For How Long
Financial paperwork accumulates, and most people either keep everything or discard indiscriminately. Neither is ideal, and the categories are reasonably clear.
Keep permanently
Birth, marriage and death certificates. Divorce and separation orders. Adoption and citizenship papers.
Property deeds and title documents, and records of purchase price and capital improvements — the latter matter for calculating any tax on gain when selling, sometimes decades later.
Wills, powers of attorney and trust documents, with the originals stored securely and the location known to the executor.
Pension scheme documentation, particularly for older schemes with valuable guarantees that may not be obvious from later statements.
Records of significant gifts made, which can matter for inheritance tax purposes in jurisdictions where lifetime gifts are considered.
Keep for the statutory period
Tax returns and supporting documentation for as long as your tax authority requires, which is commonly several years after filing and longer where returns were late or amended.
Business records generally for a longer statutory period than personal ones.
Records supporting any claim you have made or may make, including insurance correspondence.
Keep while relevant
Insurance policies for the period of cover plus long enough for any claim to emerge. Liability policies written on an occurrence basis may matter years later.
Loan and mortgage agreements until the debt is cleared, plus evidence of final settlement afterwards.
Warranties and receipts for the warranty period, and for anything you might claim on contents insurance.
Investment purchase records until disposal and the subsequent tax period, since acquisition cost determines any gain.
Discard routinely
Utility bills and bank statements beyond a couple of years, unless supporting a tax return or a claim.
Receipts for everyday purchases past any return period.
Superseded versions of documents, keeping only the current one.
How to store it
Digital copies of everything, in a system that is backed up and accessible to whoever would need it. Photographing documents is sufficient for most purposes.
Originals of the permanent category stored physically and securely, with the location recorded.
A single index listing what exists and where — accounts, policies, pensions, professional contacts. This document is enormously valuable to family and takes an afternoon to produce.
Shred rather than discard anything containing account numbers or personal details.
This article is general information. Retention requirements vary by jurisdiction; check your tax authority's guidance.
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