11th March, 2016
Planning for Long Term Care…
This is an area of planning that many clients don’t want to consider. Let’s face it, it’s not the most pleasant of thoughts when contemplating retirement.
So, who might need long term care?
The answer is potentially anyone. The Association of British Insurers estimates that a person turning 65 today has a 70% chance of needing some form of care services during their lifetime, and 20% of those will need them for longer than five years.
How much could care cost?
Based on a recent market study, the average cost for care at home is £15.00 per hour. This means someone who has just two hours of care a day could pay up to £10,000 a year.
The costs for residential care will vary depending on whether nursing care is required, and where in country the home is located. On average costs for residential care are in the region of £29,000 per year, but this can rise to £39,000 if nursing is provided.
How will I pay for care if I need it?
The Local Authority will help to fund the cost for individuals who have income or assets below a certain threshold and are unable to pay for to their own care fees. However, the rules surrounding the assistance the authority will give, and under what circumstances, are complex and liable to change.
Taking away the stress
DB Wood are here to help make planning for care easier for you and your family. This can be seen in a recent case where one of our clients needed an increased amount of help with her day to day needs, but wanted to stay in her home for as long as she could.
Having fully assessed her situation; using our experience and specialist expertise, we were able to help her raise the funds required using her assets and property. This gave her the peace of mind that she could continue to pay for the care she needed whilst remaining in the home she loves for as long as she wants.
How can DB Wood help you?
There are a number of choices available for funding potential future care costs but there is no substitute for planning early; giving consideration to possible care needs you may have in later life, and how this could fit into and impact on your longer term plans. Our personal cashflow management service can help identify if your portfolio of assets will be sustainable enough to cover potential care costs throughout what we call “Stage 2 Retirement”.
DB Wood have a Long Term Care specialist, who is fully qualified and experienced to advise on Long Term Care Planning. Our specialist is available to work with you and your planner so should the time ever come when a little extra help is needed, you are in the best possible financial shape to choose the one that is right for you.