Not only is the population in the UK growing, but people are also living longer now than ever before, therefore the need and importance of planning for long term care is becoming increasingly apparent.
Demographic data from the Office for National Statistics shows that the population of the UK in 2016 was at its largest ever, at 65.6 million and projected to reach 74 million by 2039. While it is growing, improvements in healthcare and lifestyles mean the population is getting older; in 2016 18% of people were aged 65 and over, 2.4% were aged 85 and over.
In Stratford – Upon – Avon 18% of the population were over 65 in 1996 and by 2016 this had risen to 25%! It is estimated that 34% of the population will be over the age of 65 by 2036.
While we are living longer, it does not necessarily mean that we are living longer healthier lives. It has been estimated that 40% of people aged 65+ have a limiting longstanding illness.
Age UK report that:
The aging population and increased prevalence of long term conditions have a significant impact on health and social care and may require £5 billion additional expenditure by 2018.
With long term care you don’t know what will be required and for how long, so it is a real minefield and an area around which there is a great deal of concern.
Financial planning for long term care is a specialist area where clients want advice on funding for care homes or nursing fees. With an ageing population interest in this area is increasing because long term care in a care home is very expensive and can quickly erode your savings, including the equity in your property.
It’s a complex area but, if you are a home owner with savings and a reasonable pension, then if you (or your partner) need care (at home or in a care home) it is likely that you will incur significant costs, whilst not getting much, if any, help from the State until your savings have been reduced.
Having a financial plan in place in the event that long term care is needed means that you can put measures in place to protect your assets and ensure that you would have enough income to cover you, as well as making sure you have funds available to cater for long term care for yourself or a loved one.
Here at MPA Financial Management Ann Baguley is a specialist when it comes to advising clients on long term care and passing wealth down the generations and is also accredited by SOLLA (Society of Later Life Advisers). For more information please contact Ann directly at firstname.lastname@example.org.