The prospect of navigating care fees can be daunting, particularly when care needs arise unexpectedly. These costs can quickly accumulate, potentially making this period the most expensive of your life. However, with the guidance of a SOLLA-accredited financial planner, you can effectively plan for these costs, alleviating the associated stress.
The costs of care
The cost of care is influenced by various factors, including the extent of your care needs, the standard of care, additional services, and location. For instance, the average care home in the East Midlands costs over £1,000 per week for self-funders, increasing to over £1,300 per week for those requiring nursing or dementia care.
There are numerous care homes and live-in care providers in the area, some of which specialise in areas such as dementia care. It’s crucial to explore these options to find the best fit for your needs. Most care providers are open to fee negotiation. If this process seems daunting, a Care Navigator can act on your behalf and assist in other areas.
Who foots the bill
Your local council may contribute towards your care costs, depending on your needs and financial position. However, if your assets exceed £23,250, you will be classified as a “self-funder” and will be required to pay for your own care. This limit is set to increase to £100,000 in October 2025. It’s worth noting that your property is excluded from the means test if care is to be provided at home, or if your spouse continues to live there.
Ensuring your money lasts
A financial planner can work with you to build a comprehensive financial plan, efficiently utilising pensions, savings, investments, and insurance. The goal is not only to provide financial security but also peace of mind. By projecting forward, we can estimate how long existing finances can sustain the care fees and formulate a plan to use your money as efficiently as possible.
The importance of Power of Attorney
Close family or friends are often relied upon to help make difficult decisions about the care of a loved one. It’s crucial to have both types of Lasting Power of Attorney in place so that they have the authority and legal right to speak on your behalf, if you want them to. Preparing these in advance is essential as it’s not possible to do so if you lose capacity.
Our previous blog provides more information about how to set up a Lasting Power of Attorney.
Additional support
Several forms of assistance are available, including home adaptations and equipment, non-means-tested benefits like Attendance Allowance and Personal Independence Payment (PIP), NHS Continuing Healthcare for those with serious disabilities or illnesses, and Carer’s Allowance for those caring for someone.
Charities such as Marie Curie, Sue Ryder, Maggie’s Centres, or your local hospice can also provide free support, offering advice, counselling, and practical help for individuals and their families living with illness.
Remember to check your eligibility for these forms of assistance with the relevant authorities or organisations. Consulting with a social worker or care navigator who specialises in care funding can also be beneficial.
Comment
Planning for care costs in later life may seem overwhelming, but with the right guidance and resources, it’s a manageable task. The key is to start planning early, explore all available options, and seek professional advice when needed.
How can Nelsons help?
Nathan Richardson is an Investment Director & Chartered Financial Planner in our expert Investment Management team.
For further financial advice concerning your investments or finances, please get in touch with Nathan or another member of the team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online form.
Contact us