In later life, many people will need some kind of assistance due to health conditions or cognitive decline. Long-term care is a broad term for a variety of services available to meet these needs. Here’s some of the key points to consider as part of your planning.
Where should I live?
There are several options to choose from.
Option |
Pros |
Cons |
|---|---|---|
Home Care |
– Allows individuals to stay in their own homes – Provides personalised assistance – Typically less expensive than a care home |
– Can be costly for full-time care – Less access to medical professionals – May require costly modifications to the home for safety |
Assisted Living |
– Retains independence, with some assistance – Provides social activities and community – Offers help with daily tasks like bathing, dressing and meals |
– More expensive than home care – Does not offer 24-hour medical care – May not be suitable for those with greater care needs |
Nursing Homes (Care Homes) |
– Provides 24-hour medical and personal care – Suitable for individuals with significant medical needs – Offers rehabilitation services |
– Can be very expensive – Less independence for residents – Setting may not feel like home |
Specialist Care (Memory or Dementia Care Units) |
– Tailored to individuals with cognitive impairments – Specialist staff trained to handle dementia and Alzheimer’s – Secure, protective environments |
– Can be a very expensive option – Potentially limited availability in some areas – May still require transition to another facility as needs progress |
How do I get an assessment of my care options and funding?
It’s essential to seek professional assessments to ensure that the right level of care is chosen and that you understand the funding implications.
- Care needs assessment: A health and social care assessment is carried out. Contact your local council’s social services department (www.gov.uk/find-local-council), or call Age UK’s free helpline on 0800 678 1602.
- Financial assessment: If the care needs assessment identifies you need help, you will have a financial assessment (means tested). This will determine whether you qualify for government assistance or benefits.
- Ask your Origen financial adviser: We can provide advice to help you understand the costs involved and explore your funding options.
How do I pay for care?
It’s important to create a financial plan as soon as possible. There are several ways to fund long-term care:
- Immediate Needs Annuity: this involves making a lump sum payment to an insurer, who provides regular payments to cover the cost of care.
- Lump Sum to Insurer (Tax-Free): Similar to above, a lump sum can be paid to an insurer to provide regular, tax-free payments to pay for care directly.
- Personal savings and investments: Many individuals use their savings or the sale of assets to fund assisted living. This might include selling investments, using retirement savings, or selling a home.
- Equity Release: This allows homeowners to release some of the value of their property. It includes lifetime mortgages (where you borrow against the value of your home) and home reversion plans (where you sell part or all of your home).
- Family Support: In some cases, families contribute financially to support the cost of care. However, this may be unsustainable for extended periods.
- Government Assistance: the care funding system in the UK can help, though the eligibility requirements and the amount of assistance vary.
It’s a big decision – get financial advice
At Origen, our advisers will help you create a financial plan incorporating how to funding long-term care in the best way for your individual circumstances. We can assist with:
- Planning for future care needs – we’ll advise you on how you can maximise your retirement income and plan for future long-care care costs.
- Immediate needs annuities – our specialist retirement advisers will help you purchase an immediate needs annuity to help fund care directly.
- Protecting your wealth: We’ll advise you how to protect your and your family’s wealth and plan your estate for the future. This includes ensuring your assets and income are sustainable throughout your lifetime including long-term care costs.
Speak with your Origen financial adviser
We’re here to guide you through the process, helping you make informed decisions about long-term care. We’ll ensure your financial plans align with your care needs, so you can secure the right support while maintaining financial stability and peace of mind.
CA13115 Exp: 09/26
