The information contained within the following news articles have been pre published. The articles were published on the dates indicated and the information contained within these issues include references to taxation, legislation, regulation and other issues or concerns that may no longer apply
Planning for your long term care
We are all living longer. It is common to live into the 80s and 90s, so you may need to think how you would cope financially if you need help in looking after yourself or your partner, in years to come. Here Census Financial examines some points to consider if you or, a family member, face the prospect of moving into a nursing home.
How much does long term care cost?
The bad news is that the costs of care are high and climbing. The average annual fee for residential care homes is around £20K. Where constant medical care is needed, a nursing home is needed and makes the average cost over £25K a year. Fees in recent years have been well exceeding inflation. So get healthy now. Eat well, get some exercise, pursue an outdoor hobby, and stay fit.
How do I pay for long term care
If you need long term care, then you will probably have to pay for it or contribute to it. There are various short term funding options, such as using savings, selling collections, collectibles or some land. Or, you may wish to release equity from your home by using an Equity Release scheme, either a Lifetime Mortgage or Home Reversion scheme.
For longer term planning ahead, you can buy various investments or bonds, a pre-funded Long Term Care insurance, or other insurance plan. Equity Release plans from banks, building societies and insurers are also popular. Whatever you do, our advice is to take your time, look at all the options, think of what would happen if you need long term care, what will happen of you do not, and how it affects your family.
Can I pay for care in my home?
By increasing the level of care at home it may be possible to delay going into a nursing home. Expect to pay about £10 an hour for a qualified carer to help with tasks such as preparing meals or dressing and undressing. Check whether you may be entitled to 'direct payments' from your local council. These payments are for anyone who has been assessed as needing help from social services and who would like to buy in services privately.
What about an instant annuity?
Some or all of the cost of full-time care may be financed by buying a type of annuity known as an immediate needs care plan. These pay more than a standard annuity because typically people go into care when their health is poor and life expectancy is comparatively short. Only a handful of companies offer these plans at present and their rates vary. Speak to a Census Financial consultant for advice regarding these plans.
For concise, impartial analysis and advice about of your long term care options and plans, call the Census Financial team on 028 9066 8700.
Chartered Financial Planner