However, by taking the time to learn about your options and seeking help from professionals, you can get support to navigate the difficult care landscape.
We asked three financial advisers who specialise in later-life care for their key advice on financing care. All are accredited by the Society of Later Life Advisers (Solla).
1. See if you're eligible for any benefits
Catriona Smith, independent financial adviser at Chase de Vere IFA Ltd, and member of the Solla Advisory Board:Pension credit
Guarantee credit tops up weekly income to £218.15 for single people and £332.95 for couples in 2024-25, and is therefore limited to those whose income is below this level.
Savings credit pays up to £17.01 a week for a single person and £19.04 for couples. The amount you receive is reduced by 40p for every £1 by which your income exceeds the threshold (£189.80 a week if you're single, and £301.22 for couples).
Attendance allowance
You can access attendance allowance if you have a physical or mental disability that means you need someone to care for you, though you don’t necessarily have to currently have a carer to claim.
If you move into a care home and your place is funded by your local authority, you likely won’t be able to continue receiving attendance allowance.
Primary health needs
A primary health need, in terms of NHS CHC funding, could relate to one of a number of areas, such as breathing or mobility.
NHS funding is based on medical need, and financial circumstance has no bearing on decisions made.
Anyone in a nursing care home with significant caring needs may also be eligible for NHS Funded Nursing Care (FNC). This covers additional nursing care needs, but not accommodation costs. There are two flat rates of £235.88 per week or £324.50 per week.
Find out more:2. Consider funding options for care in your own home
Mel Kenny, chartered financial planner at Radcliffe & Newlands Wealth:Direct payments
Direct payments can give you the flexibility to arrange your care how you want – for example, allowing you to hire specific carers you already know.
Equity release
When you’re receiving care in your own home, the value of your house isn’t included in the assessment of your assets.
Equity release won’t be right for everyone, and can be expensive if you don’t keep up with repayments due to the compound interest.
If you are interested in equity release, you’ll need to get financial advice from a qualified equity release adviser, ideally one who is independent, rather than restricted.
If you take out an equity release product recommended by HUB Financial Solutions, Which? will earn a commission to help fund our not-for-profit mission.Find out more:3. Don't try to dispose of assets to qualify for funding
Samantha Gibson, senior wealth planner at Canaccord Wealth:Deliberate deprivation of assets
If you apply for council funding, you’ll have a financial assessment for care to determine whether the value of your assets falls below the threshold (£23,250 in England and Northern Ireland, £32,750 in Scotland, and £50,000 in Wales) to become eligible for support.
Deliberate deprivation of assets is when someone gives away money, property, or other assets to be eligible for local authority funding. The council will look back on previously owned assets to consider whether any disposals were deliberate.
In a case of deliberate deprivation of assets, you’d be liable to pay the costs you owed, regardless of whether you can still afford them. The council can recoup costs from both the person who disposed of the asset and the person who received it, and even go through court proceedings to recover costs.
Find out more:Advice on your options
There’s no ‘one size fits all’ answer as to how to best fund later-life care, so to find a solution that suits your needs and financial situation, you might consider working with a specialist financial adviser.
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source https://www.which.co.uk/news/article/3-expert-tips-on-paying-for-care-aBJOQ9P4NBVe