SWT Wealth Management
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.
According to research by the Local Government Association, only 15% of adults plan for future long-term care costs.1
The Centre for the Modern Family found that half of UK adults say they will have to rely on a relative to help with care fees2, which cost from £623 to £726 per week3.
One in ten people providing financial support to a loved one, has been forced to make sacrifices, with a quarter of those individuals making major adjustments such as remortgaging their house.4
The study draws attention to the need for individuals and families to anticipate future care needs and invest appropriately or buy the right kind of financial 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”.
Equity release or selling property could free up capital. But most will view this as a last resort. Therefore, it is worth talking to a financial adviser. They will go through a fact-finding process with you, understand your needs and help you decide the most suitable approach.
If you pay fees yourself and your capital drops below £23,250 (in England and Northern Ireland only), the local authority may assist with funding. However, they may still take some of your income if you have less than this amount. It is therefore important to seek expert advice so that you know the rules.
A financial adviser can help avoid some common mistakes, such as ‘deprivation of assets’- where you are judged to have purposefully given assets away to avoid these being included in the local authority’s financial assessment. They will also ensure you are receiving all the state benefits to which you are entitled.
2, 4 Scottish Widows, The Centre for the Modern Family, The cost of care: the financial and emotional impact of providing social care for family members, August 2017
3 LaingBuisson, Care of Older People, Twenty-ninth edition, July 2018
To receive a complimentary guide covering Wealth Management, Retirement Planning or Inheritance Tax planning, contact SWT Wealth Management on 029 2252 0168 or email sherald.waterhouse-trew@sjpp.co.uk