Selecting the right care for ourselves, or a relative, is something few of us have experience of. After all, for most of us, it is something we may only have to do once. It is however a growing issue for many people in the UK and, as life expectancy continues to lengthen, it is something that an ever increasing proportion of the population will need to address.
If you are planning for your own care, the costs involved can be daunting to say the least. The average cost of residential care in the UK is currently estimated at £550 per week. If nursing care is also required, this can rise to £758 per week. The average cost of care in your own home is £15 per hour. However, these averages not only vary from region to region throughout the UK, but are suppressed by local authority rates, and fees of £1,000 to £1,250 a week are not uncommon. While the state can help with some costs, eligibility is limited and many people find themselves over the threshold at which state support is provided.
Unfortunately, one in four people who fund their own care run out of money. Most commonly, this is because they do not consider all the options or take proper advice.
The problem is that nobody can predict how long care will be required and therefore how long it will have to be paid for. Running out of money means relying on the local authority to fund your care, and there are no guarantees the local authority will wish to maintain the same payment levels. Unless your family is able to make up the difference, compromises may have to be made, for example, the size or outlook of the room or moving to an alternative care home.
In addition, of course using up all your money to pay for care means there is no legacy to leave for loved ones.
However with financial planning it may be possible to fund care for as long as required, whilst safeguarding as much capital as possible. For this reason consulting with a specialist care fees advisor is essential from both a health and financial perspective.
Chris Lee DipFA, CeLTCI
Accredited member of Society Of Later Life Advisers
chris.lee@aquilafm.co.uk
T: 07810 481248
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