As the proportion of elderly Britons continues to rise, demand for care is exceeding supply and this had led to a crisis in terms of funding long-term care.
According to the Association of British Insurers (ABI), one in three people will require care, so there’s a good chance that you or your family will be affected.
However payment for long-term care has become an increasingly pressing problem and the amount of financial support that you can expect from the Government will differ depending on whether you live in England, Wales, Scotland, or Northern Ireland.
You have various options when planning how to finance what you need – there are different types of long-term care plans available, such as ‘immediate needs annuities’ which can help to bridge the gap between your income and care costs.
You could also consider using your pension pot to purchase an enhanced annuity, which will pay a higher level of regular income if you have a medical condition or lifestyle that is likely to reduce your life expectancy.
Alternatively, your home could provide a source of finance; you might wish to downsize to a smaller house in order to free up capital. You could also consider an equity release scheme but these should be approached with caution as they don’t necessarily offer good value for money.
Above all, it’s vital that you seek advice. Platinum is always happy to speak with clients and advise on the course of action that suits them best.