Most of us spend decades working hard, saving money, building up pensions, and hoping to enjoy a comfortable retirement.
But one area many people overlook is planning for long term care, even though needing some level of support later in life is increasingly common.
This guide will help you understand why planning ahead matters, what care might cost, and the key steps you can take now to protect your finances, your wellbeing, and your family.
Why Plan for Later Life Care?
We are all living longer. In the UK today, more people than ever are reaching their 70s, 80s, and 90s. As we age, the likelihood of needing support, whether at home, in a residential setting, or full nursing care naturally increases.
However, many people still avoid the topic. In the recent care report, insurance company Just found:
73% of people over age 45 have not planned for long term care or even discussed it with family.
Among those aged 75+, nearly a third said they avoid planning because the idea of needing care feels too difficult to face.
While understandable, delaying conversations or planning can place emotional and financial strain on families at what is already a stressful time. Planning early gives you choice, clarity, and control.
What are the costs?
The cost of care can vary depending on the setting and the region in which it’s provided.
According to carehome.co.uk, The UK average weekly cost can be;
Residential care costs: £1,298 per week (£67,496 per annum)
Nursing care costs: £1,535 per week (£79,820 per annum)
Dementia care costs: £1,343 per week (69,836 per annum)
Who Pays for Care in the UK?
If you need help with day to day tasks or require residential or nursing care, there will be costs involved. Your local authority may contribute, but this depends on your financial situation.
Current Funding Thresholds (England);
If you have over £23,250 in savings or assets, you will typically pay the full cost of your care.
If you have less than £14,250, the local authority usually funds your care in full.
Different limits apply in Scotland, Wales, and Northern Ireland.
What Should You Consider When Planning for Long Term Care?
Long term care planning isn’t only about money, it’s about ensuring you receive the support you want, in the environment you prefer, while protecting your loved ones from unnecessary pressure.
Here are the key steps when planning for later life:
Understand Your Potential Care Needs
Care needs vary greatly, from occasional help at home to full-time nursing support. Thinking ahead can help you prepare for different scenarios.
Estimate Future Costs
Care costs are rising, and they differ depending on location, the type of care, and health needs. Creating a realistic cost estimate now, helps avoid surprises later.
Trading at a Discount or Premium
Consider your pensions, savings, investments, property, and other assets. Understanding what resources you have, allows you to build a financial plan that gets the most from them.Explore Funding Options
There are several ways to pay for care, including:
• Income and pensions
• Cash savings and investments
• Equity release
• Immediate Needs Annuities (a type of insurance that can guarantee care fee payments for life)
• Deferred Needs AnnuitiesCheck Your Eligibility for State Support
Even if you have assets, certain benefits such as Attendance Allowance aren’t means tested and could help.Put Legal Protections in Place
Having an up to date Will and Lasting Powers of Attorney (LPA) ensure your wishes are respected if you ever become unable to make decisions yourself.Seek Specialist Advice
Care planning is complex, and the decisions you make may affect your finances for the rest of your life. Speaking with a qualified later life adviser can help you understand your options and make informed choices.
How We Can Help
At MHA Wealth, we understand how emotional and overwhelming later life planning can feel for both individuals and families.
Ben Harrison, Director at MHA Wealth, is a Society of Later Life Advisers (SOLLA) accredited specialist with over 15 years’ experience advising clients on care funding, estate planning, and financial strategies tailored to later life.
Disclaimer
MHA Wealth is the trading name of MHA Wealth Ltd, a company registered in England (01916615) with registered office at The Pinnacle, 150 Midsummer Boulevard, Milton Keynes, MK9 1LZ.
MHA Wealth is authorised and regulated by the Financial Conduct Authority (FCA) with registered number 143715 and is a member of the London Stock Exchange.
This is a marketing communication for general information only and is not intended to be individual investment advice, tax or legal advice. The views expressed in this article are those of MHA Wealth, or its staff, and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product. In particular, the information provided will not address your personal circumstances, objectives, and attitude towards risk. You are therefore recommended to seek professional regulated advice before taking any action.
This information represents our understanding at the time of publication of current law and HM Revenue & Customs practice. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change.
MHA Wealth is a member of the MHA group. Further information on the MHA group can be found at https://www.mha.co.uk/about-mha-group.
