Life expectancies are now much higher compared to previous generations; it is widely acknowledged that more of us will need care in our later years. The idea of ‘it will never happen to me’ is quickly evaporating and I would ask you to consider for a moment those you know who are currently in receipt of care.
You will probably need to pay for your own care. If your ‘assessable’ assets exceed a total value of £23,250 then you are expected to meet the full cost of your care and accommodation (if you need to move into a nursing or residential home).
If your ‘assessable’ capital is below £23,250 then your local authority must provide your care but they will determine where you will stay and your level of care within their budgetary constraints.
You may have to sell your family home to pay for your care or consider other available options.
According to Which? the average South West annual residential home room cost exceeded £34,000 in 2016/17. Nursing home annual fees were in the £48,000+ region.
The Government recently referenced a research report by BUPA and the London School of Economics whereby it found that the average length of stay in a residential home was 2.25 years ‘with a considerable tail of long-stayers’.
Nursing care fees could therefore exceed £100,000 for the ‘average person’ and they could be even higher for ‘long-stayers’. Dementia diagnoses are also on the increase; many individuals with care needs in this area may outlive national average life expectancy statistics by considerable margins.
How can we help you plan for this?
Thomas Westcott Chartered Financial Planners advise families, attorneys and court-appointed deputies on care fee funding matters. We can offer you and your family (or representatives) a free initial consultation to discuss and understand your needs in this complex area.
We can help you formulate a clear strategy with your care fee funding. We can advise you on what can be claimed from the state, we can build cash-flow projections to illustrate how long your money could realistically last and we can help you make the best of your available assets so you can even aim to leave an inheritance to your loved ones.
With an appropriate financial planning strategy, we can help you and your family achieve peace of mind at a time for when you have reached a vulnerable stage in your life.
By Simon Lake, Chartered Financial Planner
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