Planning for the Future Amidst the Care Home Crisis
It is always important to plan for the future, but this is particularly true for over 50’s at the moment due to the current care home crisis in the UK. Many pensioners are struggling to afford care home costs as these have risen drastically over the last few years, despite the average pensioner income only marginally increasing.
A recent study found that the average cost for a year in a care home in the UK is £33,904, which is 10% higher than 2016. When you factor in that the average pensioner income is £14,522 (an increase in 0.5% from last year), this leaves significant shortfall and this can be seen up and down the country (although some areas are more expensive than others).
What is Being Done
As a result of this, many families are having to sell their assets so that they can afford care for loved ones. Obviously, this is a serious cause for concern and can have a lasting impact on people’s finances. The Government’s plans have been met with controversy and the upcoming budget will indicate what their plans are to address this situation, but it is important for over 50’s to start thinking about their future now. It is impossible to predict what the future holds, which is also why it is important to prepare in case you will need to pay to stay in a care home.
How to Prepare
If possible, budgeting and selling unnecessary assets are a good way to raise funds for potential care home fees later in life and especially if you put these funds in an ISA. This is not possible for everyone, but you could consider at-home care instead of going into a care home. This is much more affordable with costs as low as £9,156 a year for 12 hours of care a week.
If you were to opt for at-home care, there is a lot of equipment and adaptations that you can use to make your home easier to live in. This includes stair lifts, bath aids and accessible showers. Additionally, electric scoots and wheelchair accessible vehicles can be purchased to make it easy and safe for you to get around and be independent. These are available from specialists like Allied Fleet.
The care home crisis is a serious problem in this country and one that the Government needs to address, but it must also be considered by families and over 50’s who need to start planning for their future.