A pensioner spoke exclusively with Express.co.uk about her father-in-law’s situation. He ended up having to sell his home to contribute to existing care costs. Chris, and her husband, 65, are urging people to consider care when retirement planning to avoid difficulties in the future.
She said: “Long-term care is a minefield! My father-in-law is in a care home over 100 miles from us, so we don’t see him as often as desired. His home was sold and most of the money burned through paying the care home fees – this upset him a lot as he’d worked hard and wanted to leave something to his two children, grandchildren, and great-grandchildren.
“However much money you think you have saved to take care of yourself in old age won’t be enough. Long-term care would ideally be done in your own home by people you trust, that’s just not the case for most. You’re in a home with very few of the things you most treasure (they’ve gone to a charity shop, council tip or friends/relatives).”
Indeed, while Chris is fully aware of potential long-term care needs, she is conscious that people often have no idea how much money they will need or for how long. The couple has savings and decent-sized pensions and have worked hard to ‘future proof’ their home as much as possible including upgrading the bathroom and kitchen, installing a new boiler and new windows.
With figures showing that around three in four people will require some form of care in later life, Fidelity International is urging people to plan for how they might afford this and avoid ‘leaving it to chance’.
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“I’m horrified by the cost of long-term care – you work hard, you pay your taxes, you pay National Insurance which we all are supposed to believe will cover the cost of pensions and long-term care, and it doesn’t.
“Care home provision can be poor in quality, and is increasingly expensive – I know many homes charge in the region of £1,250 per week which is highly unaffordable.”
Chris retired from work in December 2019 after a 25-year career in the education sector, having paid off her mortgage and wanting to access the payout available for her to retire.
Emma-Lou Montgomery, associate director, of Fidelity International, said: “They say the best time to fix the roof is when the sun is shining. So those all-important years when you’re earning and accumulating your retirement pot are also the best time to be planning for any potential care you may need when you’re older.
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“With plenty of other more immediate financial demands on our money, it can feel difficult to prioritise saving for something we all hope we won’t need. However, when it comes to care, it’s far better to overprepare than leave it to chance.”
Fidelity’s figures highlight the difficulty many face in envisaging what their needs may be as they get older, even as this life stage draws closer – with 70 percent of women aged 55 and above unsure of what care they may require during their retirement.
There is often some confusion about the amount individuals are expected to contribute towards the care they access in retirement. The research found people expect this to cost an average of £79,000 – although estimations ranged from nothing, with local authorities covering it in its entirety, to in excess of £200,000.
Figures published by the Government suggest one in seven people are expected to face care costs of more than £100,000 and one in 10 over £120,000.
Ms Montgomery continued: “Trying to predict what your care needs may be in retirement – decades before they may actually arise – is near impossible.
“But what we do know, is that people are living longer than ever before and therefore increasingly likely to require some form of assistance in later life.
“As with any financial goal, the earlier you start planning towards it the better. Ensuring you’re part of a workplace pension scheme if eligible; contributing regularly to your personal pension and other long-term savings; and seeking advice for those most complex aspects of financial planning are all good foundations for building up your retirement pot.
“Navigating the financial side of long-term care is undoubtedly daunting – there’s a lot to consider, particularly if the need is urgent. While you can’t control when this time may come, taking steps sooner and ensuring you have sufficient savings to draw upon can help to provide some peace of mind.”
