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The cost of care – financial planning for long-term care

Planning & protection

23 May 2023


Simon Turner

Elderly woman on financial planning for long-term care

Recent data from Fairstone reveals that the cost of long-term care can be a real concern for many individuals.

In Fairstone’s annual client survey, respondents were asked: “If there was anything that would keep you awake at night with worry regarding your finances and/or investments, what would it be?”, results show that a number of respondents reported the cost of care as a factor.

With a solid financial plan in place, you can rest assured you and your loved ones will be taken care of in later life. Long-term care planning can often be a difficult conversation to have, however its important families are aware of the costs and the funding options available to them.

Fairstone’s chartered financial planner, Simon Turner, provides an overview of how you can be prepared in 5 simple steps.

1) Understand what type of care might be needed

Care needs can range widely depending on personal circumstances, such as the level of care required and the duration. Options scan include sheltered accommodation or assisted living, domiciliary care, care homes (residential or nursing), and palliative or end-of-life care. You can find out more information on types of care homes and other options available Age UK.


2) Research the cost of care

The cost of care can vary significantly depending on your location, type of care needed, and level of support required.

According to Unbiased*, you can expect to pay just over £16,000 for care at home (based on three hours per day at an average hourly rate of £15), the average cost of a residential care home in the UK is around £32,000 per year, with nursing homes generally more expensive at £43,000 per year.

It’s important to research the cost of care in your area to get a sense of what to expect. Speak with care homes in your area and compare their fees and services.


3) Explore funding options

Although some care is funded by the NHS and local authorities, it is often left up to the individual to self-fund. Ways to pay for care may include pension income, savings and investments, an immediate care plan, drawing on capital, or your home.

Care home fees and funding options can change over time. It’s important to stay informed about any changes to funding or eligibility criteria. Speak with a financial adviser or your local authority to ensure you’re up to date on any changes that may affect you.


4) Plan ahead

For those who are self-funding their care fees, it’s important to plan ahead. It’s also important to consider the long-term financial implications of care. In many cases, families may need to use their own savings or sell their loved one’s home to pay for care. This can have significant implications for their long-term financial security, and it’s important to seek legal advice to ensure your assets are protected.


5) Seek financial advice

Paying for long-term care can be a significant financial burden for families. However, with careful planning and the right financial advice, it’s possible to manage the costs and ensure you (or your loved ones) receive the care needed.

A financial adviser can help you navigate the complex world of care fees, and work with you to develop a plan that provides financial security and peace of mind.

Although planning for your later life might not be at the forefront of your financial planning goals, it’s more important than ever to consider your options.


Get in touch with a Fairstone adviser today to plan for your future.

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