Footing The Bill
To what extent are people prepared – both emotionally and fi nancially – to provide care for themselves or their families?
More of us than ever will come to need it. But few of us have any idea how we’ll pay for it. The growing cost of long-term care – and the strain that can come with providing support to elderly family members – is fast becoming one of the biggest challenges facing society today.
Understandably, moving into a care home can be an emotionally diffi cult time. One of the toughest challenges we all face is how to deal with change and how to make it as positive as we can for ourselves and those closest to us.
Unfortunately, there is no instruction manual for how families should work together to handle care-giving and the many practical and emotional issues that go with it. Anxieties are bound to arise, along with a level of stress that you might not have expected – often made worse by fi nancial worries.
, almost half of people avoid thinking about potential care costs, while one in four admit that they have no idea how they would cover the costs for themselves or a relative.
According to research by The Centre for the Modern Family1
The research also reveals the degree to which people expect to be reliant on their family for fi nancial support in the future. Half of UK adults say they will have to rely on a relative to help them afford care fees, which currently cost an average of £866 per week.2
One in ten people who provide fi nancial support to a loved one have been forced to make sacrifi ces, with a quarter of those individuals making major adjustments such as re-mortgaging their house.
“Our research shows that an over-reliance on relatives and the state could put families in serious fi nancial diffi culty,” says Jane Curtis, Chair of The Centre for the Modern Family. “It can seem diffi cult to know how to prepare for the future, but to avoid a fi nancial care crisis we all need to have an honest discussion on later-life care as early as possible, so no one is left footing a bill they can’t afford.”
Preparation pays
The study draws further attention to the need for individuals and families to anticipate future care needs and invest appropriately, or buy the right kind of fi nancial protection. It recommends that saving for care “needs to become as inherent as paying off a mortgage, saving into a pension, putting money into an ISA, or making a will.”
Understandably, many of us will have misgivings about putting money aside for elderly care, especially if we have more immediate calls on our income. However,
28
without a robust plan in place, it could fall to our families to make very expensive decisions at what could be an emotional time.
While equity release or selling a property could free up the money needed, many people will view this as a last resort. That’s why it’s worth talking to a fi nancial adviser. They will go through a fact-fi nding process with you to understand your needs and help you decide the most suitable approach.
If you end up having to pay fees yourself, known as ‘self-funding’, and your capital drops below £23,250 (in England and Northern Ireland only), the local authority may assist with funding. However, the local authority might still take some of your income if you have less than this amount. It’s therefore important to seek expert advice so that you know the rules.
A fi nancial adviser will also help you to avoid making some common mistakes, such as ‘deliberate deprivation’ – when you are judged to have purposefully given assets away to avoid these being included in the local authority’s fi nancial assessment. Additionally, they will ensure you are receiving all the state benefi ts to which you are entitled.
“It’s clear that many people simply don’t understand the social care benefi ts and support system,” says Curtis. “Providing clarity and raising awareness of what is and isn’t available is critical to helping people prepare for the longer-term future.”
The report’s fi ndings are also a good reminder of the need for people to talk with their relatives about their plans for the years ahead. Aspects concerning care, downsizing, wills and lasting powers of attorney are not always easy to approach, but they are vital if future decisions are to be based on a clear understanding of the recipient’s wishes. The sooner those conversations are had, the better.
Please visit my website or contact me to receive a complimentary guide covering Wealth Management, Retirement Planning or Inheritance Tax Planning.
Scott Symes FPFS, Certs (MP & ER)
Chartered Financial Planner 01202 951227
07885 899742
scott.symes@
sjpp.co.uk www.scottsymeswm.co.uk
1 ‘The cost of care: the fi nancial and emotional impact of providing social care for family members’, The Centre for the Modern Family, August 2017 2
Regional cost fi gures from LaingBuisson, Care of Older People, including England, Wales, Northern Ireland and Scotland, May 2017
To advertise, please contact 01202 657317 or email
karen@broadstonelink.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64
