Jason Shares His Expertise About How to Pay for Long-Term Old Age Care - with Moira O'Neill for The Financial Times
The original article was published in The Financial Times on 22nd September 2023, but is only available to The Financial Times subscribers. As part of our mission to empower as many people as possible to make better financial decisions, we have published below all the information Jason shared with them, so you get the maximum benefit from it (not just from what was published).
HOW MUCH WILL YOU NEED?
People I speak with in their 40s, 50s and 60s are aware that care costs represent a potential drain on their resources in their later years.
But they don’t know if they will need it, how long they might need it for and what intensity of care would be needed. For most, a worst-case scenario would be too large a sum to feel comfortable trying to build up separate savings for, particularly as it is something that they don’t want to happen.
PAY FOR CARE BY RELEASING CAPITAL?
Many will take the view that if they can get their finances into a sound enough position to retire comfortably, including owning their home outright, then if care is needed capital could be released from their property at a future point, either through a downsize, outright sale or some form of equity release.
IT'S A TRADE-OFF
Everything in personal finance is a trade-off. This approach may mean that children or other beneficiaries inherit less than if you had built up a separate care fees fund but you might find that more palatable than working a lot longer or spending a lot less in retirement just in case you needed care.
GET IN TOUCH
If you would like to discuss anything raised in this article, or any other help you need to plan your own financial future, please call us for a free consultation on 020 3488 9505.
The value of your investments can go down as well as up, so you could get back less
than you invested.
Tax and Estate planning is not regulated by the Financial Conduct Authority.