07: Long term care

Long term care can cost up to £20,000 a year (more in some cases). By age 80, there is about a 1 in 5 chance of needing such care.

Planning for care fees can be complex – you could qualify for some state and local authority help, but the latter is means tested based on how much capital and income you have and that can include the value of your home.

It is possible to buy insurance in advance of needing care, or you can wait and see if care becomes needed. If it does, a range of solutions is possible – it may be possible to rearrange investments, take out an arrangement linked to the value of your home (called a lifetime mortgage or home reversion scheme) or buy a special insurance designed to pay for care for as long as you need it.

Each situation is different, so there is no simple solution to meet all needs.Last Updated