What do I need to think about to plan for care later in life?

Category: Financial Planning

Later-life care can be a complex topic to discuss and plan for.

However, making a care plan now ensures that your wishes are carried out and that you have long-term security. If you haven’t addressed it yet, keep reading to find out what you should do.

According to a Canada Life survey, 7 in 10 UK adults have not considered long-term care. It could suggest that there is a significant gap in many long-term plans.

Anxiety is common when considering long-term care, which is why many people postpone making a plan:

  • 28% put off thinking about care because it’s emotionally overwhelming.
  • 25% said they avoid thinking about care due to financial anxiety.

These are understandable emotions. The need for and cost of care can be overwhelming, but putting off planning can make you feel even more anxious. While it can be challenging to deal with, a care plan can give you hope for the future. It may imply that you can enjoy your life now, knowing that if medical attention is required, you have a plan to fall back on.

According to government figures, In 2019/20, there were approximately 390,000 people in care homes. Some people will also be helped in their own homes. While only a tiny percentage of people require care, having a plan in place can be beneficial.

So, where should I begin if I don’t have a care plan?

1. Outline your preferences

What would you want if you need assistance in your later years? Many people would prefer to remain at home with family or professional assistance.

Setting out your preferences can help you create a budget and care plan that is right for you.

While it is essential to express your desires, keep in mind that your circumstances may change. Your care plan should be adaptable and cover all bases.

2. Determine how much state assistance you will receive.

According to the Canada Life survey, one in ten people believe that developing a care plan is not their responsibility and that the state or family will step in.

While the government will help in some cases, most people will have to pay for at least some of their medical expenses. It is critical that you understand what assistance you will receive from the state and when you will be required to pay.

You should also review support with your preferences in mind, as state support may not be what you’re looking for.

3. Discuss your plans with family and friends.

In addition to understanding state assistance, talking with your family about what assistance they can provide can be beneficial.

This is especially important if you are relying on loved ones to provide care. Separate research found that approximately 1.8 million people care for a family member, and they anticipate monthly costs of £1,100 on average. The monthly cost is £1,600, so some families may face a shortfall.

4. Investigate the cost of care.

When developing a care plan, the cost is an important consideration. A realistic figure can assist you in creating a care fund that will provide you with security if you need it.

Despite this, only 10% of those who had considered care had researched the cost of in-home support, and 9% had looked at care home bills.

Costs can vary greatly depending on where you live and the type of assistance you require. Without this crucial information, you may discover that you have a gap in your care fund.

5. Include it in your financial plan.

Care funding should be a part of your financial plan. Having assets to cover care if you need it later in life can give you peace of mind.

Only 27% of those considering care are actively saving or investing to cover potential costs. Failure to complete this step may indicate that you cannot carry out plans or are concerned about your financial situation.

We can assist you in integrating your care plan with your financial situation. It’s a step that can help you achieve your objectives while providing long-term financial security. Feel free to book a free, no-obligation chat here.

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