And the proportion of those self-funding is only set to increase in the coming years.
The number of people self-funding their residence in a care home is ‘mind-boggling’, according to respected IFA Gareth Rees.
Rees, a Chartered Financial Planner working for GEM & Co Financial Services, was speaking in the wake of a Sunday Times article that revealed care home fees are set to trump the cost of a year’s tuition at either Eton or Harrow.
“There are currently 420,000 people in the UK who live in care homes. Estimates suggest the average cost is around £574 per week – although regions do vary – and a London facility can very easily be double the average UK cost,” Rees said. “It is mind-boggling to think that one third of people residing in care homes are self-funding, and that is only set to rise in the future as a result of our ageing population.”
The Sunday Times has claimed that should care home fees rise by 10% in 2016, as many experts have predicted, then the average cost of residence in a care home could soon top £40,000 per year. However, it is anticipated that the steep prices associated with staying in a care home could catch many people unware, and could leave some in serious financial difficulty during retirement.
“If you are due to retire soon, it would be prudent to make provision for care home fees so you can maintain a good standard of living regardless of what life throws at you,” implored Rees. “An accredited financial planner will be able to give careful thought to this area as part of a comprehensive financial plan, which will give peace of mind knowing that everything is covered and all eventualities have been considered.”
If you are concerned about rising care home fees and want to ensure you are ready for life post-employment, speaking to an independent financial adviser can help. To find an IFA in your area, search the VouchedFor database.
Article posted by VouchedFor quoting Gareth Rees on 3rd February 2016