Whether the need is care at home or moving in to residential care there are many areas that require some consideration. It can be a hard time for those concerned but the main focus has to remain on the individual who requires the care.

In most cases, there are a number of parties involved in the decision making process with the children often helping their ‘parent’, whilst other parties can be involved for moral and emotional support. In all instances, it is important to remember who the client is and their needs, not the needs of others.

There are many areas that need to be considered when looking at funding long term care, these include:

  • Will the Local Authority provide any financial support?
  • How are different assets assessed under the Financial Assessment?
  • Will the care be at home or will they move into residential care?
  • What is the estimated cost of care and is this likely to increase?
  • Is there a shortfall in the cost of care compared to the support provided by the Local Authority and if so how will this be funded?
  • If self funding, how long will their investments/savings last for?

This list is by no means exhaustive, there are so many factors to consider it can become a minefield of information and form filling to ensure the correct level of support and care is received.

Knowing where to start can be the main problem and there are organisations, such as Age UK, who can provide some assistance and guidance on dealing with the local authority to establish what care options are available and at what cost.

When it comes to the funding of care and the best way to use any existing investments/savings only around 7,0001 people a year seek Independent Financial Advice. This can be a very complex area, it is not just about providing the income to pay the care fees but to ensure it is taken tax efficiently and there is sufficient available to last for as long as is needed. Consideration should be given as to whether a new product should be established, this can be specifically designed to provide the income and can factor in future increases in care costs as the need for care increases.

At Wingate, using the specialist industry knowledge and financial software we have available we are able to provide guidance and advice on the most suitable method of care funding. We are able to provide an estimate of how long any existing savings and investments will ‘last’, this helps to build the financial plan and provides peace of mind.

If you would like to discuss how we can help, or any other financial planning areas, please contact me.

1Source: Office of National Statistics

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