Financial Planning Advice
If you have assets above £28,500, you will have to fund your care homes fees yourself. There are many ways to do this and, with careful financial planning, it may be possible to structure your finances in such a way that your care fees can be paid indefinitely, while you still preserve capital for your beneficiaries.
To find the best solution for your funding needs it is vital that you speak with a specialist financial advisor. Many advisors specialise in this area and provide free initial consultations. The Society of Later Life Advisers is a good place to look for a suitably experienced, specialist later-years financial adviser.
When you talk to your financial advisor, they will explore the full range of funding options open to you. These may include:
Once you’ve looked at your financial situation, you may find that you have enough to pay for your care directly from your pension(s) and other sources of income.
You can use your savings to pay for care, including money held in Cash Individual Savings Accounts (ISAs) and National Savings. Remember to plan ahead to see how long any savings will last.
You can invest your savings, or the proceeds of an asset sales, in a wide range of options including equities, investment bonds, unit trusts and shares. The returns that these investments deliver can be used to pay for care.
Care Fee Plans
A Care fee plan (also known as an immediate needs annuity) is a specialist insurance product that provides a guaranteed income for life which is paid direct to the care home.
Your family may be in a position to help you pay for some or all of your care home fees.
Property Sales, Letting or Equity Release
There are a number of ways to use property to fund care. See the section above for more details.