As average life expectancy continues to increase, more and more of us are likely to require some form of long-term care as we get older. But with places in residential care and nursing homes costing in excess of £25,000 a year, paying for that care is becoming a serious challenge for a growing number of people. Government is making proposal as to how to reduce the costs but will it make a big difference?
This is compounded by the fact that anyone with assets of more than £23,000 (including their home) is unlikely to receive any help at all. Some people may be able to exclude the value of their home from their total assets, for example if they are “joint tenants”, but for some the only option may be to sell their home. This may not provide the answer, however, considering that funds will at some point run out and you may have to move to an authority-run establishment from a care home which you have chosen.
So a good option might be to buy an immediate-needs annuity, which can ensure against funds running out, and may also allow you to retain any money left over from the sale of your home as a legacy for your family.
Funding long-term care is an important issue but it’s a complex one and the choices you make can have an enormous impact on your future happiness and well-being so you should always seek expert advice before you make any decisions.