Long Term Care

 The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.

Are you concerned about funding your long term care? At Four Oaks Financial Services we have expert Financial Advisers who have additional qualifications and experience specifically relating to financial advice for long term care in Sutton Coldfield and across the region. Contact Us.

The issue of how we pay for care in the UK has been given considerable media attention in recent years.  The current situation on funding for long term care, is that it is broadly the responsibility of the individual. So, that means it is mostly down to each of us as individuals to plan for care home funding for ourselves and our family.

We have qualified Advisers who can give financial planning advice for care and care home fees.  Not every Financial Adviser is qualified to give this kind of advice.  Finding a local qualified and experienced Financial Adviser for long term care in Sutton Coldfield is crucial for effective financial planning.

Some Long Term Care Facts & Figures

The cost of a single room in a nursing home costs on average over £800* per week.  That’s around £41,600 per year. So, unless planned for, this kind of expense will have a massive impact on the wealth of an individual or a family.

*Source Age UK. 9th December 2019.

The Government promised a policy paper on social care two years ago but has still not made this public.  So, it remains unclear as to what role the State will play in providing funding for long term care.

At present even if the total value of your assets is below the means tested upper threshold (£23,250) your local authority or trust will expect you to contribute some of your income to your long term care. This makes it vitally important to plan for the cost of your care and the care of family members.

If your savings and assets are above £23,250 in England, you will normally be expected to pay for the full cost of long term care.

Please contact us for more information or to make an appointment.

How Can You Protect Your Assets?

Firstly, you can’t transfer assets to someone else to avoid paying the full cost of care – this is known as deprivation of assets.

But there are other steps you can take to ensure that more of your wealth stays with your family, should you need to pay for a carehome or when you pass away. No aspect of financial planning for long term care or anything else is stand-alone.  Everything is inter-linked and depends upon your financial goals and your circumstances.  We call this Lifestyle Financial Planning, take a look at this and Inheritance Tax Planning.  It will help to show you why you need the expertise of a qualified Financial Adviser in Sutton Coldfield and surrounding areas.

Don’t Plan Your Long Term Care In A Rush!

The Money Advice Service website1 says “People often have to make quick and difficult decisions about their own or a loved one’s care needs. Thinking about the options in advance will help in the long run.” As many of us can expect to need residential care in the future it is important to talk to a care home financial adviser who is a specialist at providing financial advice for long term care in Sutton Coldfield locally and around the area.

Not every Adviser is qualified to give advice on long term care planning. You should check with your Adviser that they are appropriately qualified. At Four Oaks Financial Services several of our Advisers are qualified to give specialist expert advice on planning for Long Term Care. You also have access to a Chartered Financial Planner and Fellow of the Personal Finance Society at our firm. Contact us for more information or to arrange an appointment.

What Will Long Term Care Funding Typically Provide?

Long term care planning can provide the money you or a family member will need to pay for care. Typically, this will cover assistance with the basic activities of daily life such as getting out of bed, dressing, washing, bathing and going to the toilet.

You can receive care in your own home, in residential homes or nursing homes. We recommend you talk to one of our long term care and care home financial advisers local to Sutton Coldfield.  They will advise you on long term care as part of a holistic understanding of your pensionsinvestments and savings, retirement planning and inheritance tax planning.

Your Options For Paying Care and Care Home Fees

Here are some of the long term care choices you can discuss with one of our qualified advisers:

  • Immediate needs annuities that pay a guaranteed income for life to help cover the costs of care fees in exchange for a one-off lump sum payment, if you have immediate care needs
  • Long term care planning advice
  • Enhanced annuities – you can use your pension to buy an enhanced annuity (also known as an impaired life annuity) if you have a health problem, a long-term illness, if you are overweight or if you smoke. Annuity providers use full medical underwriting to get a more accurate individual price depending upon your circumstances. People with medical conditions including Parkinson’s disease and multiple sclerosis, or those who have had a major organ transplant are likely to be eligible for an enhanced annuity
  • Equity release plans – give you the ability to get a cash lump sum as a loan secured on your home – these can be used if you are looking to fund a care plan now or in the near future
  • Savings and investments – give you the opportunity to plan ahead and ensure your savings and assets are in place for your care needs

Equity Release will reduce the value of your estate and can affect your eligibility for means tested benefits.

If you would like more information, please contact us.

What Long Term Care And Care Home Funding The State Provides

Government state benefits will continue to provide some help but may not pay for the full cost of long term care.

For instance, if your savings and assets are above £23,250 in England you will normally be expected to pay for the full cost of long term care and care home costs. In this case long term care insurance could be of great benefit to you.

If you are already retired, or are nearing retirement, it makes good sense to take advice from one of our long term care and care home financial advisers in Sutton Coldfield who serve the wider area, to ensure that you have the basics in place should you or your partner need long term care in the future. We would also recommend you make a Will and have Power of Attorney in place.

If you are of working age, you are in the best position to plan for your future care needs. Saving while you earn through investments or savings plans, ISAs, national savings accounts and your pension will help with the cost of long term care should you need it in later life.

Long Term Care, Estate Planning, Wills and Power of Attorney is not regulated by the Financial Conduct Authority

1 Source information from The Money Advice Service https://www.moneyadviceservice.org.uk/en/articles/how-to-fund-your-long-term-care-a-beginners-guide

By clicking on the above link, you are now departing from the regulatory site Four Oaks Financial Services Limited. Neither Four Oaks Financial Services Limited nor Quilter are responsible for the accuracy of the information contained within the site.

Please contact us for an informal discussion or to make an appointment to see one of our Financial Advisers in Sutton Coldfield to talk about financial planning for long term care.