Have you seen the cost of Long Term Care lately?
If you have, then you might like to start talking seriously to your middle aged clients now about planning for their retirement and, ultimately, how to fund a care home later.
Why? Because planning needs to take place when they’re fit and well. Only then can you work out together the steps they need take to be able to make the best use of their assets. And remember, those assets include their property as well as any investments, bonds or savings they may have which could be assessed, ultimately, by their local council.
- The average care home now costs £24,500 pa*
- If they own £23,000 of assets, they will receive no council help**
It’s sensible now to look at how those assets can fund a lifestyle retirement, together with planning for those unknown happenings in life, and the possibility of having to move into long-term care. You may just find that equity release can play an important part in helping to finance their retirement and possibly their care home fees. Especially if the plan chosen is flexible and able to take into account any changes in your client’s future circumstances, without penalty.
Make sure your client is fully aware of the options.
* Age Concern/Help The Aged
** Local councils will assess that if your client has £23,000 of capital (£22,000 in Wales) which includes the value of their homes, then the full cost of care home fees will, almost certainly, have to be met by your client.
Source: Age Concern/Help The Aged