Financial Planning for Care Needs
As a financial adviser, I have seen first-hand the importance of planning ahead for long-term care and also unfortunately the effects of leaving it too late.
The average cost of residential care in England in 2023 is over £35,000 per year, with nursing care costing over £50,000 per year on average! These costs can quickly add up, and if you haven't planned, you may find yourself struggling to pay for the level and quality of care you need, whether home care services, assisted living facilities, or nursing homes.
Without planning, your savings and assets can quickly become depleted, leaving little or nothing to pass on to your loved ones, which can be devastating when you have worked so hard to build a nest egg.
There are financial tools available such as trusts and insurance policies to protect your assets, which can be considered as part of holistic financial planning. However, you must not be seen to be engaging in ‘deliberate deprivation of assets’. The main considerations here are the timing of what you are planning, the motive or intention and also the amount of money involved. It is a delicate area so seeking professional advice before acting is strongly advised.
Planning ahead can help to reduce stress and anxiety for both you and your family members. If you know that you have a plan in place to pay for care, you can relax and enjoy your retirement without worrying about what might happen if you need extra support in the future. Similarly, your family members will be reassured that you have thought ahead and taken steps to ensure that you will be well looked after.
Planning for any long-term care needs well in advance of when you may actually need it is a crucial step in ensuring that you are financially prepared for any eventuality. Unfortunately, if you wait until you are at the point of needing care, your options become far more limited.
As a SOLLA Accredited adviser, this is an area I specialise in and as award-winning vulnerable customer champions, we’re well-placed to help you make a plan to prepare for the future, whatever that may hold.
To book a complimentary meeting to discuss your circumstances, call 0117 3636 212 or email office@haroldstephens.co.uk.