If you live in England or Northern Ireland and your personal assets are more than £23,250 you now have to pay the cost of the long term care you will receive.
Making arrangements for long term care fees can be very costly both financially and emotionally.
Apart from the emotional cost, arranging care for yourself or a loved one is also extremely complicated. Dealing with issues like mental capacity, eligibility for state benefits, Lasting or Enduring Powers of Attorney*, the type and location of the care home and funding the care itself causes stress and worry. And yet less than 15% of people who do not qualify for financial support will have sought appropriate, and regulated, financial advice before entering care.**
In 2017, there were 1.6 million people living in the UK over 85 (2.4% of population) –this figure is expected to double to 3.2 million by 2041 (4.5% of population).**
Residential care homes for older people in England currently need to charge fees of £696 to £849 per week to generate a sustainable return (£36,192 – £44,148 per year). This increases for those receiving nursing care with costs between £969 and £1,075 per week (£50,388 – £55,900 per year), meaning the costs can be substantial.***
If you need care, and have to fund the fees yourself, there are many things that you will need to consider. Not only will it be important that you receive care in a home you have chosen, you will also need to consider whether you can afford to pay the fees for as long as is needed. You may also wish to protect your wealth so that some inheritance may be passed on to the next generation.
Paying for care can be an expensive and long term commitment. There are pros and cons to the funding solutions available, so it is essential to seek financial advice from a specialist adviser as early as possible to find the right solution to suit your individual needs.
As one of the members of the Society of Later Life Advisers (SOLLA) in the region, Gary and the team have advised many families on the care planning process, and implemented life care planning for them with a view to helping clients enjoy the best possible later life care they can afford.
Whether you are concerned about saving for care home fees in the future, or facing the possibility of needing to pay these fees now, AMG Wealth Management can help you and your family with the options available for the care planning process.
If you would like more information please contact AMG Wealth Management on 01332 551155 or email [email protected]
* Powers of Attorney involve the referral to a service which is separate and distinct to those offered by St. James’s Place and are not regulated under the Financial Conduct Authority.
**Laing and Buisson Report 2017/2018.
***Laing and Buisson Care Cost Benchmarks Guide Eleventh Edition 2020/2021.