Have you heard about the Government’s proposals for implementing reform of long term care funding? Last year Andrew Dilnot’s report was published which highlighted the need for an urgent review and a cap on costs.
The latest proposals implement some of the well-publicised recommendations but essentially have stopped short of bringing in changes which would give people greater confidence to plan for nursing home care in old age.
The idea is essentially to bring in a cap on funding costs so that we can each make provision and financial industry could devise insurance products designed to cover care costs.
Although this has been introduced, it is far in excess of the recommended level contained in Dilnot’s report. The Governments proposed limit of £75,000 only relates to nursing costs – given that the nursing costs are often less than a third of the total typical care costs for someone in long term care, the final bill being in care could still amount to in excess of £200,000. This is obviously far beyond most peoples’ capability to plan or save for when in retirement.
That said, it’s not all doom and gloom. For years there has been a total failure by all political parties and government to introduce any reform for long term care. Whilst the proposed cap is too high for most people, it’s a start and something which can hopefully be reduced in the coming years if there is the political and financial impetus.
At Platinum we want to help you plan for all eventualities – talk to us to make sure your retirement plans are on track for the enjoyable years ahead.