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Cost of care in later life

Choosing the best option for yourself or your loved ones

The costs of care in later life can vary greatly and depend on a multitude of factors. Notably, the type of care required, the individual’s financial situation and their location within the UK play a significant role in determining these costs

Many underestimate the true extent of care home costs and fail to plan for them adequately. However, a comprehensive wealth strategy can provide essential financial preparedness for long-term care. In England, individuals with assets worth more than £23,250 are typically expected to pay their own care home costs unless they have significant ongoing health needs.

Bring peace of mind

It is crucial to consider contingency plans for care costs, whether that involves a care home or care at home. Having funds earmarked for later-life care can bring peace of mind and enable you to choose the best option for yourself or your loved ones.

You can explore various strategies to address care costs, including Inheritance Tax planning and annuities for care home fees. Seeking expert professional advice can help you establish a ‘care costs plan’ that provides peace of mind and eliminates worries about managing care home expenses when the time comes.

Taking a holistic view

If your circumstances change and residential care becomes necessary for you or another family member, taking a holistic view of your overall wealth is essential. By doing so, your professional adviser can create the right financial plan to support you throughout the rest of your life. This may involve care home tax planning for capital maintenance, assistance with inheritance plans, or utilising an annuity for care home fees.

Deciding on the best course of action for care can be stressful, especially when determining how to finance it. It’s natural to feel overwhelmed by the numerous decisions and unsure of where to start or who to consult. However, seeking guidance from professionals experienced in long-term care planning can alleviate this burden and guide you towards a secure financial future.

When it comes to making plans for care at home, here are some steps you can take:

Assess your current situation: Start by evaluating your or your loved one’s needs for care. Consider the required assistance level, such as medical support, personal care and household tasks. Assess any specific health conditions or limitations that need to be addressed.

Research available resources: Look into the options and resources available for home-based care. This may include home healthcare agencies, community support services and government programmes. Research the types of care providers, their qualifications and their services.

Create a care plan: Develop a comprehensive care plan that outlines the specific services needed and the frequency of care required. Include details on medication management, therapy, meal preparation and other specific needs. Consult with a healthcare professional such as your GP, or a care coordinator to assist you in creating an effective plan.

Budgeting and financial planning: Determine the financial implications of home-based care. Consider the costs associated with hiring caregivers, purchasing medical equipment, modifying the home for accessibility, and any ongoing medical expenses. Review your financial situation and explore options like long-term care insurance or veterans’ benefits.

Seek professional advice: Consult with a professional financial adviser who can provide guidance on financial planning and long-term care options. They can help you understand the costs, explore potential funding sources and create a sustainable financial plan.

Communicate with family members: Discuss your intentions and plans with your family or close friends. Involve them in the decision-making process and ensure everyone is on the same page. Consider their availability and willingness to contribute to caregiving responsibilities or financial support.

Remember, each individual’s situation is unique, and it’s essential to tailor your plans according to your specific needs and circumstances. It’s recommended to consult professionals who specialise in eldercare and financial planning to ensure you make informed decisions.

Concerned about how to pay for care in later life?

Planning for care in later life is a crucial aspect of financial wellbeing. It’s important to consider various options and strategies to ensure you have the necessary funds to cover care expenses, whether at home or in a care facility. To discuss your options, please contact us for more information.


Adam Reeves

Author: Adam Reeves

Independent Financial Planner, Wealth Manager, Director

Last updated on

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Adam was quick to assess & understand my situation, and was able to discuss & communicate in a very concise and simple way the various options available to me, taking time for me to understand and clarify where necessary. My understanding & knowledge of taxation & pensions has increased significantly allowing me to feel much happier making financial decisions for the future.

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Adam did a thorough review of my pension policies, clearly explained how well they had performed, how flexible they were, how the market regulation has changed, and, crucially, what the tax implications would be if I were to leave them untouched. He accurately assessed my attitude to risk and recommended an up-to-date solution that will offer me the greatest flexibility at retirement.

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