care homes

'One in four of us will need long-term care': Are we saving enough for o...

As people live longer, more will need care either at home or in residential accommodation. The costs, though, can be huge.

"People don't like to think they will need long-term care, but once you reach the age of 65, there is a one in four chance that's exactly what you will need," explains Lizzie McLennan, senior policy officer at Help the Aged.

Ms McLennan estimates that it can cost around £25,000 a year to fund a place in a residential care home. However, in some parts of the country – most notably London – where property prices are high and available beds thin on the ground, the bill can be over £30,000 a year. And that's before any costs for creature comforts that the new resident might request.

"If you want an en suite bathroom or direct access to a garden then the costs can rise further," says Sandy Lowth, an independent adviser with financial-planning firm Informed Choice. "I have just costed two places for a couple and the total has come to around £120,000 a year."

But an estimated 12 million people are not even saving enough for a comfortable retirement, so expenses on this scale will be beyond them unless they sell their property or any other asset they may have wished to pass down to their family. As people live longer, more will need care either at home or in residential accommodation. The costs, though, can be huge. ... more

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