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Checklist for self-funders

  1. If you are extremely fortunate your pension income will cover your care and you will not need to worry, however people in this situation are definitely in the minority.
  2. If pension income does not cover your fees then you need to calculate the difference between your guaranteed income and your care fees – we call this the “care fees gap”.
  3. Can this gap be bridged by additional State benefits such as Attendance Allowance which is worth up to £4,635.80 per annum. This is payable at two levels dependent upon the level of care you need. It is not means tested and not backdated so don’t delay in your application if you think you may qualify.
  4. If you still have a care fees gap you need to consider how much capital you have – and calculate how long it will last if used to cover the gap.
  5. Consider moving money to cash deposit to cover up to 5 years of your care fees gap.
  6. Consider your capital and how it is invested – ask yourself what could happen if investment markets were to crash; is your money tied up in a property portfolio and that could prove difficult to sell? Plan ahead and take advice.
  7. Think about reducing investment risk in your investment portfolios. Take qualified advice.
  8. When encashing investments consider tax implications and use your tax allowances. Take qualified tax advice.
  9. Consider using pension freedoms to access pension money flexibly. Take qualified advice.
  10. Funding care fees from your own capital is still a dangerous game as the money available is finite and could run out if your live a long life. It’s a little like playing Russian Roulette with your health and welfare. An alternative is to shift the risk of living a long life onto a provider of a care fees plan. Speak to a SOLLA Accredited Care Fees Adviser about how these work and if they might be suitable.

How we can help

For further information on later life advice, contact Tim Davison on tim.davison@shawgibbs.com or call 01865 292200

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Contact Us

For further information on later life advice, contact Tim Davison on tim.davison@shawgibbs.com or call 01865 292200.

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