Leading South West chartered financial planners, Albert Goodman, is offering free advice sessions over the next two weeks at its offices in Chard and Yeovil, to help families understand and plan for the financial implications of the recent Care Act.
Dubbed the “Affordable Care Act 2014”, it hit the headlines for capping care fees at £72,000. But scratch below the surface and families could end up paying five times that amount, with those in the South West being hit harder than most.
This is because many care costs are not included in the calculations, meaning people are expected to spend around £140,000 on care costs before the cap is reached.
There are three elements of care costs to consider: daily living costs (‘hotel costs’), local authority ‘set care costs’ and top-up care costs (costs in excess of what the local authority is prepared to pay). The cap only applies to the local authority’s ‘set care costs’, which means there is a very low chance of the cap being reached for the majority of individuals entering care.
Dave Robinson, Director of Albert Goodman Chartered Financial Planners, comments, “Here in the South West the cost of care is relatively expensive – when compared to national figures, it’s only lower than London and the South East! This relative expense means people paying for their own care in this area should reach the cap sooner than in other regions. However, once the care cap is reached, other costs still need to be paid (like the hotel and top-up costs) and independent analysis estimates the total cost of care in the South West over 10 years could be in excess of £300,000.
“With a predicted increase in the over 65s of 50% in the next 20 years, and a doubling of those aged over 85, this is an area of financial planning that will affect even more families in the near future. This is why we are hosting free advice surgeries in Chard and Yeovil, to help families protect their wealth and plan for financing the cost of care, as well as discuss other later life financial planning matters.”
Albert Goodman’s free advice surgeries are in Chard on Friday 5 and 12 September and in Yeovil on Tuesday 9 and 16 September. Contact Albert Goodman’s Yeovil office on 01935 423667 or Chard office on 01460 64646 or email firstname.lastname@example.org