Funding Long-Term Care

It’s not news that we are an ageing population in the UK, with life expectancy increasing each year.

To make the best of these treasured years, ideally you will be in good health and also have finances in place to enjoy yourself. However, many people will need some form of care in later life, perhaps at home or in a residential setting and unfortunately when your health deteriorates, this care can become very expensive.

One result of the pandemic has been an increased focus on the UK’s long-term care system, its strengths and weaknesses and how profoundly important good care is to quality of life for so many of the population.

At the point of needing it, finding the correct care is paramount but it is vital to make sure you can fund it both now and in the future. The rates will vary in different parts of the country but on average it costs £47,320 per year for full-time care in the UK and there is currently no cap on these fees (although there is a proposed reform)

There is often confusion over whether someone must fund these care costs themselves or whether it can be funded by the local authority (LA) or NHS.

To qualify for maximum LA funding in England, your assets must be below £14,250. If your assets are higher than the upper threshold of £23,250, you’ll have to pay for your own care. Assets between these levels should result in some care funding from the LA.

If you are in a position where you will need to pay for your care, there are many options to fund it and there is no ‘one size fits all’ approach – each one depends on your circumstances and preferences. As specialists in later life financial planning, we can help you to make a plan to ensure you avoid the potential shock of care fees at a time when you don’t need the worry.

Call 0117 3636 212 or email office@haroldstephens.co.uk to book your complimentary review and let’s have a relaxed chat about your circumstances.