Long Term Care
Many pensioners have to dip into savings to pay for their care and one in five is forced to sell their home. An ordinary Briton has a pension pot of £73,100, according to a study by insurer LV= producing an average annual income of £ 4,521. Over the past decade, the average care-home stay has increased by 13% to two years and seven months. Local authorities can help with the cost of care but it is “means tested”. They will impose upper and lower limits depending on your savings, property and other assets. The limits for care differs in England, Scotland, Ireland, Wales and Northern Ireland.
On average in the UK, an individual can expect to pay around £29,000 a year for a residential care home, rising to over £37,000 if nursing is required. Women (who are twice as likely to go into a home) are more at risk since 25% rely on the state pension alone, compared to 9% of men. A quarter of adults with parents in care are using their own money to fund it. Although many of us leave the workplace in good health; we are living longer. The average retirement is now 17 years long and the likelihood of us needing residential or domiciliary care is increasing. Low interest rates, coupled with social care budgets being cut, create a worrying financial backdrop. We would encourage those individuals in or approaching retirement, to seek advice as to how they can start making provisions now to potentially meet these growing costs in later life.