Care: can you afford it?

Andy Hopper, Independent Financial Adviser and Long-Term Care Specialist at Manning and Company, answers questions about the cost of residential and nursing care.

Andy, there have been announcements in recent months about changes in funding for residential care. What have these been about?

The government has been looking at ways to reform the rules for residential and nursing care funding. They have been guided by the Dilnot Commission Report, published in 2011. Amongst other things, the Report proposed capping the costs which individuals would have to pay for their care. This is good for those with assets, as it limits the amount they would be expected to pay; and also means that their home would not necessarily have to be sold to fund care.

So what is the current situation?

From 2017 anyone with assets (including their home) worth more than £123,000 will have to pay for the first £72,000 of their care costs. Additionally they will pay “bed and board” of up to £12,000 annually when in a nursing home. 

Never too young for money management!

By Patrick Goddard, Independent Financial Adviser, Manning and Company

At Manning and Company we talk a lot about planning for the future.  Hopefully you have your own financial future under control (if not, come and talk to us!) - but what about the next generation? 

Of course, if you have dependents it’s important to consider how they would be taken care of, should anything happen to you. 

But what about also equipping them to take care of themselves? 

Are we teaching our children the importance of good financial management from an early age?  And an early age it needs to be; as research indicates that adult financial management habits have been formed by the age of 7!