Whether you are a relative or someone who needs to plan for their own care, the costs involved can be daunting. The cost of residential care in the UK is now estimated at £24,908 a year. If nursing is also required, this can rise to over £34,788 a year (1) And at an average of £17.30 per hr, just 3 hours of daily home care could amount to more than £18,000 per year.
Currently 41% of people who are in residential care are paying for it themselves. It can be tempting simply to try and pay for it out of savings and pension income. But, given the high costs mentioned above, savings and therefore any inheritance for loved ones could be quickly wiped out.
It is therefore a good idea to consider appropriate financial planning to ensure care fees can be met for as long as required.
This website includes useful information on the financial decisions you will have to make when self-funding care. Click on the links on the right hand side of the page under 'Paying for long term care' to read more.