Are there any similar options available for funding care fees?
If you have significant sum available to pay for care fees there are a couple of alternative ways you can use it to ensure you’re covered now and in the future.
The first of these is Care Annuity. This involves handing over a lump sum (either all or some of your savings or investments) to a third party, who will then pay your care fees monthly. This is a good option for those who need peace of mind knowing that they are covered for care fees in their chosen home indefinitely.
The second is simply using savings without investment to cover care fees. Although this doesn’t guarantee any additional income it does eliminate the risks associated with investing and can be used to subsidise care fees in the future.
Are investment options suitable for nursing home costs?
Yes, investment options are suitable for nursing home costs. It is worth considering however that nursing home costs are generally greater than the costs incurred through standard residential care provision. This means that your money will go a lot further if you are accessing residential care compared with if you are covering nursing home costs.
As explained above, it’s worth considering nursing home costs even if you are not expecting to need nursing care. This way you can be sure that your funds will be sufficient to provide adequate care for a lifetime rather than only in the short term. Planning for nursing home costs reduces the likelihood of running out of funds and having to rely on local authority support or the sale of property to get by.
Where can I find more information about paying for care home fees with investment money?
If you are thinking about ways to fund your care home fees, and in particular using income from your investment, then we recommend you speak to a specialist advisor. This is an accredited, qualified person who has specific experience in assisting individuals who want to invest their money to pay for care home fees. They are also an independent party – so they won’t try to sell you any product in particular and only have your best interests at heart.
A specialist financial advisor will be able to:
– Advise you on any alternative options that are available (and may be more appropriate for you)
– Advise you on the level of income you may expect from your investments both in the shorter and medium term, enabling you to plan for future care home fees
– Advise you on how much investment risk you should take with your capital and what impact this will have on the income that is paid (and your ability to cover care home fees)
– Advise you on your inheritance planning and how you can efficiently pay over to your family any excess money that is left on your death
– Clearly explain the tax implications of any investment income you receive
– Manage your money on an on going basis to take the worry away from you
Whilst using a financial advisor doesn’t eliminate the risks attached to investment completely, it does significantly reduce the likelihood of poor investments and negative equity situations.
Additional information about paying care home fees can be found here on the UK Care Guide website
How do I choose a reputable financial advisor?
The assistance of a financial advisor is essential when choosing investment as a method of funding care. However it’s essential that you have access to someone experienced who will be able to look after you and your money properly.
We suggest choosing financial advisors who are fully accredited, registered and qualified with a track record of success for previous clients. Word of mouth referrals are always preferable compared with online testimonials, as this way you can really get a feel for how they can help and can trust the information you’re given. You can find a link to a directory of financial advisors below.
People that can help you and other useful information
See below for more help and support.