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.
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.
Here is a useful video that talks about paying for elderly care
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.
Below we have set out the main routes available to you to pay your care home fees. In essence you can either:
Using your property to pay for your care fees
There are primarily three ways that you can use your property to pay for your care fees. These are:
This is 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.
This is where you are able to take money, tax free out of your home and use that to pay for your care costs or to just simply use it to enjoy your retirement. The most popular types of equity release schemes are Lifetime Mortgages and Home Reversion Plans.
Here is a useful video that explains how equity release works.
Here is a video that has the pros and cons of equity release.
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.
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.
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.
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.
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.