The fallout from the coronavirus crisis continues to affect every aspect of finance. Many families are now realising that their plans for relatives in care could be at risk.
Many had already been concerned about fee increases at the beginning of the year. News that their loved ones in care homes are particularly at risk from the pandemic increased their worries. But the biggest worry of all may be that some care providers have said they will have to raise their fees to recoup costs, or risk going out of business.
Care providers are having to deal with staff shortages, provide PPE, take on agency workers and manage complex medical issues as GPs have stopped doing in-house visits. Their costs have increased dramatically, leaving families with the choice of finding more money at a time when it is already short, or struggling to rehouse their relatives at short notice.
Many care homes have already started refusing new admissions and looking at increasing fees.
What has gone wrong?
These price increases come at a time when many people who had carefully budgeted for a secure future in care may have already run into problems with the volatility experienced with their investments.
Those who cover their own care costs currently pay between £27,000 and £39,000 a year on average, according to research firm LaingBuisson.
Someone with less than £23,250 in savings or property equity can get their local authority to pay some of their fees. However, the council cover costs only up to a set limit, which in practice can mean having to move to a cheaper care home.
It looks inevitable that some families will be facing a shortfall with care fees that they may have thought were covered.
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Understanding your true current financial position can be the first step in planning how you will deal with care costs. Make a start by speaking to us today.
What can you do?
If your family is facing a financial crisis because of a care home commitment, there could be some solutions.
If the NHS decides that care is required simply because someone is frail or elderly, this falls under social care, which is means-tested.
Many people aren’t aware that they can get their care paid for by the state if they have long-term complex health needs. Even if your relative doesn’t qualify when they first enter a care home, they might do later down the line. Under the rules, any patient with major debilitating health problems such as dementia or Parkinson’s should have their care and nursing fees paid in full, if the condition is deemed to be the main reason they need help.
But families and campaigners say the system is unfair and overly complex.
Prime Minister Boris Johnson had promised that no one will have to sell their home to pay for care, but reforms will be delayed by the global pandemic and Brexit negotiations.
Perhaps the best solution is to get some expert help from the Continuum team.
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Expert personal advice is vital when you face any kind of financial challenge. To get our experts working for you, call us now.
There are a number of things to consider, and in the wake of the coronavirus crisis, you may need to look closely at your own plans again. With increasing costs our expertise could be vital if you are to provide a family member with the care they need – and safeguard your own future.
Call us now for the help you need.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to a suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
The value of investments can fall as well as rise and you may get back less than you invested .Property is a specialist sector it can be volatile in adverse market conditions, there could be delays in realising the investment.
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