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Paying for Elderly Care in 2018

One of the most stressful areas when it comes to care is working out how you will pay for it.

Many people are surprised to learn that there is little, or any, financial support available from the Local Authority and they are therefore responsible for paying for all the care themselves.

Many people also massively under estimate the costs of care, and in particular are shocked at the cost of paying for elderly care, particularly care homes and paying for care at home.

At UK Care Guide, we have developed a care cost calculator (see towards the bottom of the page) to help you estimate the costs of either going in to a care home or using home care or live in care.

The care cost calculators will help you better estimate how much money you will need when paying for care at home or if you need to go in to a care home.

Paying for elderly care

Here is a useful video that talks about paying for elderly care

The top 6 ways when it comes to paying for care at home or for a care home

When it comes to paying for care, there are a number of different options that you need to consider.

Paying for care will depend on the overall care home costs or hourly home care rates, your financial situation and your entitlement to any benefits or government subsidy.

The table below sets out the main routes available to you to pay your care home fees.  In essence you can either:

  1. Use your property to pay your care home costs; or
  2. Use your savings and investments to pay for your care home costs

 Using your property to pay for your care fees


Care funding approach

How does it work

Can it be used for Care Home fees

Can it be used for Home Care or Live in Care fees

Deferred payment scheme Where your Local Authority gives you a loan, sometimes interest free, against the value of your house. Click here for more information on deferred payment schemes. Yes No
Equity release Where you use a ‘lifetime mortgage’ or ‘home reversion plan’ to borrow a cash sum against the value of your home.  Click here for more information on equity release.   Yes Yes
Rent out your property Where you rent out your property and use the rental income to meet your residential care costs. Click here for more information on renting out your property. Yes No

Use your savings and investment to pay your care costs


Care funding approach

How does it work?

Can it be used to meet Care Home fees

Can it be used to meet Home Care fees

Buy a ‘Care Annuity’ Sometimes called an ‘Immediate Care Need Annuity’.  This is where you swap a cash sum with an insurance company who in return pay you a guaranteed income for life.  Click here for more information on buying an annuity.   Yes Yes
Use your savings Use the savings that you have built up to directly pay for your residential care home costs or care in the home costs.  Click here for more information on using your savings.   Yes Yes
Investment income Use income you generate from your assets to meet your residential care home costs or your home care costs.  Click here for more information on using your investment income Yes Yes

You can use the calculator below to help you estimate how much you will need when paying for care.  Please note that the numbers are estimates only and you will need to speak to individual care homes and home care agencies to get actual costs.

paying for elderly care

The 6 ways to pay for your care

Using Equity Release to Pay for your care

Using a deferred payment scheme

Renting out your property to pay for your care?

Using your savings to pay for your care?

Using income from your investments to pay for your care

Buying a 'Care Annuity' to pay for your care

RESIDENTIAL CARE CALCULATOR

Please select your current area (by county)

What year will you go into residential care?

How many years will you be in the care home?

Total Cost: £

HOME CARE CALCULATOR

Please select your current area (by county)

What year will you start needing home care?

How many hours a week of care do you need?

How many years will you need home care for?

Total Cost: £

Where can you go for more help?

It is really important that when you are going in to care you think about some of the wider issues that will inevitably need to be considered.  You can access the information, as well as details of people that can help you, below.

Create a Lasting Power of Attorney to protect you and your loved ones

One area that is essential that you address when you are looking at care is to create a lasting power of attorney.

You can find professionals that can help you create a lasting power of attorney here.

Make a Will and protect yourself and your loved ones

Making a will is one of the most sensible things you can do, especially as you head in to care.

You can find a directory of professional will writers here.  They will be able to help you ensure that all the important things are covered.

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Are you sat on a pile of cash?

Equity release is increasingly a popular way to take cash out of your house TAX-FREE to pay for care and to spend some money on yourself. 

 

Click the calculator below to see how much £££ you could get.  You will definitely be surprised!

Care costs can easily exceed £100,000

We strongly recommend that you speak to an advisor that specialises in different ways to fund your care fees.   

 

 

Click the map to see care fees advisors in your area.