80,000 cannot afford their care costs
Posted on 02 December 2011
Around 80,000 people who benefit from home care or are in residential care run out of money each year, according to new data.
On top of that, an additional 345,000 people in need find budgeting for their care a major difficulty.
Despite this data from Key Retirement Solutions shows that this just two per cent of people in the UK have any kind of provision in place for the funding of future care costs, reports FT Advisor.
The danger of this, says the report, is that without the funding to make your own care choices you will be at the mercy of your local authority and receive little say in the services you receive.
Dean Mirfin, group director of Key Retirement Solutions, believes that elderly people wish to stay in their own homes for the longest period possible, with the best standard of care available to them.
But, he feels that this is not possible when families are running out of money and local authorities are having to make an increasing number of service sacrifices due to government cut backs.
Mr Mirfin stated: “Careful planning at the outset cannot conjure up money, but it can help people know what their options are and what they can achieve.
“We also want to address the needs of those who ‘top up’ their care costs privately to provide extra care at home above that provided by the local authority.”
Under the current scheme for care funding, those who have in excess of £23,250 (including the value of the property) will be required to pay for their own care needs.
But with some care costs coming in at more than £1,000 per week, it’s easy to see why so many people fall into financial difficulties.
Mr Mirfin says that as no providers offer care insurance any more, families should seek out the services of an IFA and discuss the options around long term investments.
His comments echo those made by Tim Anstee, financial adviser at Wealthcare, last month. He said that too many people fail to realise the number of options available to them from specialists.
Posted by Paying for Care Editorial Team