Expert Opinion: How could care fees affect me and my loved ones?

With rising life expectancy, increasing numbers of people require long-term care, Krys Mayoh, from Stockport accountancy firm Hallidays, explains how planning for care fees provides peace of mind for you and your family.

Did you know, in 2021, the average cost of residential care was £2816 per month, rising to £3552 for nursing care? With rising life expectancy, increasing numbers of people are requiring long-term care at some point during their lives.

Over a third of care home beds occupied in England between 2019 and 2020 were self-funded, rising to over 50% in the least deprived areas.

Currently, if you have assets over the upper limit of £23,250 (including property, cash savings, stocks and shares) you are likely to be expected to pay the full cost of your care fees. If you have less than the upper limit, or when your savings drop to this limit, your local authority will assess your ability to pay based on both your capital and income.

From October 2023, the government intends to introduce a new £86,000 cap on the amount anyone in England will need to spend on their personal care over their lifetime. However, the cap does not include any ‘top ups’ for premium level accommodation and care that individuals or relatives choose. Further guidance will be published in Spring 2022.

Why do I need to plan for care fees now?

Planning your finances provides peace of mind. It means you and your family avoid having to sort out the complexities at a time when you are all dealing with a serious family illness.

Alternatively, you may already be considering financially supporting a loved one to afford more suitable care by making top-up or third-party payments. Or you may have recently acquired Power of Attorney for a loved one and be planning on their behalf.

You may have heard about annuity policies for long term care and would like support to identify the best options for you and your family.

By planning for care fees now, you can ensure you are making the best decisions for you and your family.

Read more at Hallidays