We all spend time planning holidays and parties and saving up for new cars or homewares but how many of us actively plan how we’ll pay for our elderly care? Depending on the extent of care that we require and the length of time we need it, this could work out to be one of the biggest costs of our lives and unfortunately, we won’t all be eligible for state assistance.
Choices
Saving for elderly care is all about choices. If you have a preference about the type of care you’d like to receive and where you’d like to receive it then it’s important to make plans for this and verbalise it to your family.
Often the responsibility for care or for payments falls to the family. It is of great benefit to them if you have stated your wishes and made some provision for the payment of that care.
Your family might feel a responsibility or desire to care for you themselves. This is great if you are mutually happy with this arrangement but if not, it’s a good idea to make this clear early on. Parents often feel that they don’t want to become a burden on their sons and daughters, and perhaps don’t like the idea of their children offering personal care.
Alternatives
Alternatives to family care are wide ranging and depend on the level of home help that you need. You may simply require someone to clean and provide companionship for a few hours a week, someone to bring hot meals or a more comprehensive care package. Someone who has previously been relatively independent may suddenly require extra help following an illness or a fall. Keeping an open mind about this possibility makes it easier to plan and prepare for the future. Round the clock care will be significantly more expensive.
Full time care can be given either at home by a live in carer or in a residential setting. Even though you may wish to avoid this at all costs, and strive to maintain as much independence as possible, the reality is that there may come a time when it is unsafe for you to live alone. Luckily there are lots of good options available.
Funding
In England, if you have more than £23,250 in savings then you won’t be able to claim funding from the council. Any less than this and you will be means tested and may still be required to contribute. Of an estimated 4 million people in the UK with care needs, only 850,000 are eligible for state help.
When considering whether you can afford to pay for your own elderly care, you need to take into account how much autonomy you want in deciding how and where to receive your care. If you are self funded, you can choose when, where and how. If you are funded by the local authority, your options will be vastly reduced unless you top up their contribution. If you’re hoping to maintain control of all these decisions, it might be time to start saving.
