Later life care is something you can prepare for financially sooner rather than later. We look at the key areas to be aware of and how a financial planner can help.
Financial planning for later life care
29 August 2024
Article last updated 18 October 2024.
As we advance in age, it’s a reality that more of us will require some form of care – whether in our home or in a residential care setting. The Department of Health and Social Care estimates that one in seven people over 65 will face costs of more than £100,000 for their later life care. For about one in ten, it will cost above £120,000 over their lifetime.1
The rising cost of living in recent years makes it even more important to take control of your long-term financial future, which includes paying for later life care.
Areas that you might be keen to address when it comes to your later years include:
— Funding the costs of care to ensure your lifetime care needs are sustainable.
— Keeping loved ones informed and involved in your decisions.
— The type of care you would like, which meets your needs and expectations.
— How your choice of care will affect your ability to pass wealth to your loved ones.
Here are six key financial questions about later life care to think about with help from your adviser:
1. Have you considered if your property is suitable to meet your future care needs?
2. Are you postponing helping loved ones financially because you are concerned about your future care costs?
3. How much capital have you earmarked to meet your care needs?
4. What state benefits have you claimed?
5. How will your capital support your income to meet changing care needs?
6. Should you consider a care annuity to preserve your choice of care and capital?
There are options your financial planner can explain in further detail that could help you plan for funding later life care. Your decision could be influenced by any number of factors, depending on your finances.
Exploring these choices might seem daunting at first but the process can be made much easier with some expert advice.
If you would like to find out more about how a financial planner can help, please get in touch with us.
Source:
1. Department of Health and Social Care. Social Care Charging Reform Impact Assessment 2022.
