While there are exciting elements to later life planning, like budgeting for the trip you have dreamed of for decades, there are more serious issues that need to be accounted for.
You and any loved one you live with may be in need of some form of care as circumstances change.
To avoid losing your assets to pay for care, it is worth considering how the costs can slot into your budget.
How should care costs be treated in later life planning?
When preparing your retirement strategy, you should allocate funds to cover unforeseen circumstances that will need to be addressed.
This could include a reserve for ongoing maintenance to your property and any vehicles you may own, but should also consider the cost of care.
If you have savings worth more than £23,250, you are unlikely to qualify for help with the cost of care.
This means that you will need to budget for costs that can range between £20 an hour and £1,600 a week for a carer to visit you, or around £1,200 a week for a space in a nursing home.
How can I afford care?
It may be that neither you nor any loved one requires care, but it is best to be prepared.
Ensuring that you have some form of revenue stream, either through investments or pensions, can help to cover the costs on an ongoing basis.
You may need to consider downsizing to a smaller property or release equity from your home should you need a larger reserve of funds to address care needs.
Having a Lasting Power of Attorney is vital for both medical and financial matters should you lose your capacity to make meaningful decisions.
This can help your loved ones enact your financial strategy in order to cover the cost of your care without eroding the assets you have worked hard to cultivate.
It can be challenging to consider the need for care in your future, but preparations made ahead of time can reduce some of the stress should the need arise.
Our team are able to compassionately support you in all aspects of later life planning, including budgeting for potential care costs.
For sensitive support with preparing for the future, get in touch with our team.
