As we grow older, we do so with the knowledge that our bodies are not what they used to be. Age creeps up on us all, and while we’d like to remain the same sprightly person we were in our early 20s, this is simply not possible.
It’s natural then for our thoughts to turn to the provision of care. While children can help ease the burden, their increasingly busy lives mean that there comes a point in which we need to consider long-term residential or nursing care.
The Cost of Care
Care costs vary depending on the level of care required and the area of the country you reside in, but it may surprise you to find just how expensive it can be. The average price of care sits between £600 and £841 on average in the UK, with nursing home requirements being more expensive than residential care. The funds for care must come from somewhere, and with future planning you can remove some of the stress.
Speaking to a financial adviser should be your first point of call, particularly if you are looking to invest now to plan for the future. Dedicated software for financial advisers like that found at https://www.intelliflo.com/ is available to help them locate financial products such as stocks and share investments and private pensions that will benefit you.
How Much Will I Pay?
You may be entitled to benefits when the time comes to move into long-term residency. Age UK offers advice on benefits available, as well as current guidelines for earning restrictions.
Currently, anyone who has capital or savings of over £23,500 must pay full residential fees, with many selling either all or part of a family property to pay for long-term care. This is obviously something to avoid, as it will reduce the value of your estate. An alternative may be to purchase an immediate needs annuity to cover the cost of your care. This is an irreversible product which can only be purchased once you’ve decided to enter long-term care, as the price of the annuity is fixed in line with the cost of the care.
Whichever option you choose, it’s important to plan ahead and get advice from an independent financial adviser to find the right solution for you.