Long-term care: Preparing for high costs early
Long-term care costs to double
Tuesday, 19 Feb 2008 08:48
The cost of long-term care is expected to double over the next 20 years, Brits are warned, as one in five people over 85 will need help.
The cost of a four-year stay at a care home is expected to rise from the current price of £112,312 to £223,476 by 2028, predicts Saga.
With life expectations increasing, the costs of long-term care late in life are becoming more important.
Currently the average property worth £181,810 would provide a couple with three years of care.
Andrew Goodsell, chief executive of Saga Group, said: "Those faced with funding care now will already know the extent of that financial burden, however preparing for the future cost of care is an issue few people want to consider.
"With the cost of funding care expected to consistently increase above inflation, it’s critical those already paying for care, or those planning for the future, ensure they take advice from a fully qualified adviser."
He added many people are not taking advice from qualified sources when planning for long-term care, and so could be missing benefits or losing money by not considering the full range of options available.
"While this may seem a simple oversight, the consequences could be devastating with loved ones facing the trauma of having to be moved from the care home they are settled in when the money runs out," Mr Goodsell said.
The Financial Services Authority (FSA) has now ruled those providing advice on care funding have passed the CF8 qualification (Certificate in Financial Planning and Long-Term Care Insurance) to show their knowledge and understanding of care funding.