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Care home fees advice

Senior woman with her caregiver at home

Your care funding options

Herts & Essex Financial Services are CII CF8 qualified care funding advisers, and can help guide you through accessing all the options available to you, including:

A care fee annuity

For a single lump-sum payment a Care Fee Annuity can pay an agreed amount towards your care fees each month. It can offer peace of mind as it helps to limit the amount of capital that you need to set aside to fund your care – helping to protect your remaining capital.

You can also plan for rises in care fees by opting for an index-linked Care Fee Annuity, which can help to keep up with increases in care fees. However it does increase the cost of the annuity.

Care Fee Annuities do differ considerably in cost from one annuity provider to another, as they consider factors such as age and state of health plus the amount of income you need to generate. It's best to research the whole market, which a specialist adviser can do. They will discuss your requirements and any alternatives there may be, then research the options and present the advantages and disadvantages of these, so that you can make an informed decision.

Investing for income

An advantage of investing for income is that you can retain ownership of all of your capital and pay your care fees from your existing assets.

If you choose to invest your capital to generate an income to pay for care, your investment portfolio needs careful structuring whilst taking into account your attitude to risk and your aims for the future.

A specialist adviser can help plan your portfolio to give you the best chance of realising the returns needed to generate the level of income that you require, without exposing the investment to undue volatility or risk.

Other options

Such as an interest free loan from your Local Authority, letting a property and equity release. You may also have sufficient cash savings to simply pay for care, or you can ask for support from your family and friends.

To be put in touch with a care funding adviser regarding your own situation, call our customer service team on 01582 412985. Alternatively, complete our online form to request a call back.

Around 130,000 people go into residential care every year whilst hundreds of thousands more receive care in their own homes. So you're not alone in the questions you may have. See what others are asking – and read informed answers provided by specialist financial experts. Also post your own questions. Answers normally provided within five working days.

The cost of residential care can vary hugely by location and depending on whether you require nursing care or not. Your care needs assessment will have determined if you require nursing care or not. If you do, this increases the cost of your care considerably. Bear in mind too that though you may not need nursing care now, this could change in the future. On average you can expect to pay more than £27,200 a year for a residential care home, rising to over £37,500 a year if nursing is required.

The cost of care is not the same in all parts of the UK, with significant regional variations. For information on average regional annual care home costs around the UK for 2011/12 – with and without nursing care click below.

Average annual UK care home fees 2011/12

Region/Cost per annum

With nursing care

Without nursing care

London

£44,200

£35,308

East Anglia

£38,272

£28,808

Southern Home Counties

£41,912

£30,316

Northern Home Counties

£45,084

£31,564

South West

£40,872

£27,144

West Midlands

£36,400

£24,440

East Midlands

£33,800

£25,376

North West

£33,644

£26,648

Yorkshire & Humber

£33,800

£25,116

North

£30,628

£25,324

Wales

£33,592

£24,544

Scotland

£34,944

£29,432

Northern Ireland

£28,756

£24,232

 

Source: Laing & Buisson, Care of Elderly People Report 2011/12.