Planning Ahead for Later Life: Managing the Cost of Long-Term Care

As we grow older, it’s natural to consider how our needs may change – particularly when it comes to our health. While many people enjoy a long and active retirement, declining health in later life can bring new challenges, particularly around care and support. One of the most significant financial concerns for individuals and families is how to fund long-term care, especially if residential or nursing care becomes necessary.

At Stringer Mann Chartered Financial Planners, we understand how sensitive and personal these decisions can be. That’s why we encourage early planning, to help ease potential financial pressures and provide peace of mind for you and your loved ones.

The Rising Cost of Long-Term Care

Long-term care costs in the UK can be substantial. According to carehome.co.uk (February 2024), the average annual cost of a residential care home, including nursing care, is £49,920.10¹. This figure can vary depending on location and the level of care required, but it highlights how quickly care costs can mount up – particularly if care is needed for several years.

It’s also worth noting that care costs continue to rise. The Office for National Statistics (ONS) reports that adult social care inflation in England rose by 9.6% in 2022/23² – driven by rising staff wages and increasing demand for care services. These figures underline the importance of factoring care into your financial planning well in advance.

Who Pays for Care?

In the UK, care is not automatically free. Eligibility for financial support from your local authority is based on a means test, which considers your income and assets. Currently, if you have assets over £23,250 (in England), you’re expected to fund your own care in full – a threshold that hasn’t changed in several years.

This means that many people find themselves in the position of needing to fund care costs privately, often using savings, investments, or even the value of their home. Without a plan in place, this can place significant strain on finances and may limit your options when it comes to choosing the right care setting.

How Financial Planning Can Help

Long-term care planning isn’t just about money – it’s about maintaining choice, independence, and dignity in later life. A well-structured financial plan can help:

• Identify potential future care needs and the likely costs involved
• Explore funding options, such as investment strategies or care fees annuities
• Protect family wealth, including the potential to preserve assets for future generations
• Consider gifting strategies or trusts as part of wider estate planning

At Stringer Mann Chartered Financial Planners, we take a holistic and personalised approach to financial planning, working closely with you to understand your values, wishes, and long-term goals. It can be difficult to imagine a time when we may need help with daily living, but early planning offers the best chance of preserving both your wealth and your quality of life. Whether you're thinking ahead for yourself or supporting a loved one, our experienced team is here to guide you every step of the way. With a reputation built on trust, expertise, and truly personal service, Stringer Mann is committed to helping you face the future with confidence.

Specialist Later Life Advice

One of our Partners, Robert Stringer, is accredited by the Society of Later Life Advisers (SOLLA) – a recognition of his expertise in helping older clients and their families make informed financial decisions. Whether you’re planning for your own care or supporting a loved one, Robert’s knowledge and understanding of the challenges faced in later life can help you feel more secure and in control.

To find out more or arrange a conversation, please don’t hesitate to get in touch on: 01442 874888 or email Robert directly: robert.stringer@sjpp.co.uk.

¹Carehome.co.uk, Average care home costs, February 2024: https://www.carehome.co.uk

²Office for National Statistics, Adult social care inflation statistics, October 2023: https://www.ons.gov.uk

Further Reading

Additional articles in this series include:

• How much money do I need to see a Financial Adviser?
• Starting Work: Kickstart Your Financial Future
• Taking a Joint Approach to Finances
• Navigating the Home-Buying Journey
• Planning Financially for Parenthood
• Planning for the Unexpected
• Rebuilding your Finances after Divorce or Separation
• Retiring or Scaling Back at Work: Will Your Pension and Investments Last?
• Coping with Loss and Navigating the Financial Implications

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Although the content of the article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.