Paying for care

Many people aren't aware of the costs involved in later-life care. They are floundering with their financial planning and leaving it to the last minute. These are the findings of research we recently carried out for our report, No Place Like Home.

Later-life care means there a significant financial outlay on the horizon for everyone, but just 1.9 per cent of people speak to a professional adviser who is a specialist in 'later life', to research and plan good quality care. This means they have no knowledge of alternative care options, such as live-in care. In fact, 97 per cent of people feel most comfortable in their own home, and 71 per cent want to be living in their own home when they are over 75.

Where little financial planning has taken place, worse-case care solutions are often sought, while family finances plunge into freefall. Your advice on these matters is vital (especially when it comes to the different care options available) so that your clients know where to turn when the time comes to explore them, and the financial implications.

Uninformed and unaware

As part of a coalition that aims to raise awareness of live-in care, (where a personal carer lives with a client 24 hours a day) I believe its important people know about this alternative to residential care. Live-in care is good value for money and is comparable to the cost of a good residential care home. For couples, or where more than one person in the same household needs care, it is significantly less.

In terms of value, live-in care offers so much more than a care home. In contrast with residential care fees, where a significant proportion is spent on accommodation and food rather than on 'touch time', live-in carers at a client's own home are able to spend significantly more one-to-one quality time with their client.

From our research, we found that almost a quarter of people think that care charges are either 'between £251 and £500 per week' (21.4 per cent) or 'between £501 and £1,000 per week' (22.5 per cent). However in reality, whether it's for residential care homes or 24/7 live-in homecare, fees start from about £750 per week for carers, and around £1,400 per week for nursing care - many clearly have no idea how costly care can be.

Fees for live-in care are dictated by the level of care required. For instance, those needing 'companion care', with minimal input around personal care or condition management, will understandably pay less than those who require a great deal of care, or have complicated conditions or challenging behaviours.

Fellow Hub member, Mike Smith, explained the two different models of live-in care in last month's blog. For those choosing the introductory model, prices will usually cover payments due to the carer plus an agency management fee. For fully managed services, the fee tends to be fixed at an all-inclusive weekly rate that will include all costs associated with managing the live-in carer, plus monitoring, supervising and supporting them too.

Planning is clearly essential. A good starting point is always to think what the 'ideal world' care scenario would be, assess each situation thoroughly and advise on all conceivable options, including whether any state funding is available.

It's important your clients don't discount anything until expert planning advice has been taken because there are many ways and means of shaping and affording care.

Christina Bassadone is managing director at Guardian Angel Carers; a member of The Live-in Homecare Information Hub

Information for families and advisers interested in the financial implications of live-in homecare can be found here

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