We have an aging population. The average life span is soaring. Over the last 50 years, life expectancy has increased by around 10 years for a man, and eight years for a woman. The population of England and Wales is living longer than ever before. Sounds great? Well it is, but it does come at a price. It means much more of the population are reaching a stage in their life when nursing care is required. Government funding is available for certain people however, it is means-tested. This is resulting in a certain number of pensioners paying for their own care- and nursing homes are becoming expensive. It pays to have a plan in place that can ease the financial burden from you and your loved ones; so when the time comes, you can afford your medical fees. There are a number of funding options available but not all of them may be right for you. Want to learn how to fund your own care? Read on.
• How much can the government help?
You need to find out how much you can claim from state funding. This will give you a clear picture of how much you need to save on your own. If you fail to qualify for NHS continuing care funding, it is not the end of the world. It is possible to fund your own care.
You will also need to fund the full cost of your care home fees or domiciliary care costs if you have assets (including property) worth more than £23,250.
• What savings do you have?
If you are not eligible for continuing care and you have assets worth between £14,250 and £23,250, you will have to make a contribution towards the cost of your care. Therefore, do not solely rely on your savings to fund your care.
• How can you invest your money?
A banking advisor/financial planner can help you to find out the best way to invest and save your money to fund your care fees. Look at your assets, like stocks or cars, and decide a strategy. It may be that you can get rid of assets that you no longer use, like an additional property. The sale proceeds can be used to fund the care.
• How can my home equity help?
The last thing anyone wants to do is sell their home but there may be another option. Another route is to release the equity in your home to fund your care.
The Home Reversion scheme involves the home being sold to a home reversion company but they let the owner continue to live in the property. However, they do take all the possessions when he or she moves out/dies. What is more, they will offer you a below market value for a share of the home.
Another scheme is a lifetime mortgage. Fundamentally, it is a long-term loan secured against your home and it’s repaid when you die or go into long-term care. For maximum results, you will need to have no or little mortgage on the home.
There are advantages and disadvantages to both plans, so do your research. The amount received needs to be sufficient to cover the costs.
• What other benefits do you qualify for?
You can qualify for benefits such as the Attendance Allowance by the Department of Work and Pensions. If someone in the home needs care and is over 65 years-old, you could qualify and it is not means-tested, so it could help you if you don’t qualify for NHS Continuing Care.
Rates vary between £51.85 and £77.45 a week. Funding your own care can be daunting and confusing but fret not, there is help! Calculate the total of your care fees including accommodation, medical, living expenses and utilities and grasp a firm understanding to help you put aside the right budget to help you later in life. There are many options available to help.
This article was provided by Cheselden, specialists in nhs continuing health care. Speak to the experts today to reclaim any wrongly paid care home fees.