A Guide To Planning & Paying For Long Term Care

Nowadays, people are living longer, thanks to improvements in medicine and the fact people are experiencing a better quality of life.

Whilst this is extremely positive to hear, it does however mean that there is a bigger requirement for care in later life, especially when people experience disability or serious illness.

Planning for long term care is something that should not be put off – ultimately, unless you qualify for support from your Local Authority, you would be responsible for finding the costs to cover that care. At the time of writing, this relates to people with assets that amount to more than £23,250.

Preparing for this as early as possible is key to preventing the situation from becoming too overwhelming.

What type of care is needed?

Firstly, it is important to review the two types of care that are available:

  • Care at home – This involves staying in your home and having the support and assistance come to you. Many people prefer this option and, when possible, it is certainly the most encouraged. However, the cost of this can be around £20 an hour; over a year, this amounts to £7,300 and, even then, you may require more than an hour’s worth of support
  • Residential care – This is where you move into a residential or nursing home. Whilst this may seem a more permanent and secure solution, the cost of such care currently starts around £651 a week. Over the year, this amounts to £33,852

Long term care planning

We strongly recommend speaking with a financial adviser before commencing any long term care planning. This is because a reputable firm (or individual) will be able to evaluate your circumstances and guide you as to the best course of action. 

But essentially, the most common ways to fund this care include:

  • Income from occupational, private and state pensions
  • Investments
  • Moving in with a family member or friend and pooling your property assets
  • Selling or renting out your home
  • Considering Equity Release, Interest Only mortgages or a Long Term care annuity

Having been established since 1992, our professional financial advisers, Ben and Hannah, have a wealth of experience when it comes to long term care planning. We understand that everyone’s financial situation is different and, as such, we provide specific advice that is designed to meet your individual needs.
If you would like to find out more about our services, please feel free to get in touch and we will be happy to discuss your specific requirements.