The Real Concern: Running Out of Money

One of the biggest challenges is uncertainty.

No one knows:

• How long care will be needed
• How fees may rise over time
• How markets or investments may perform

Families often worry about:

• Depleting savings too quickly
• Having to move care homes later
• Leaving little or no inheritance

This uncertainty creates stress at an already emotional time.

How Much Does Care Cost?

Residential and nursing care can be expensive.

• Residential care: often £800–£1,500 per week
• Nursing care: often £1,000–£1,800+ per week

Costs vary by location and level of care required. In many areas of the UK, annual fees can exceed £60,000–£90,000.

For many families, this comes as a shock.

Source - LaingBuisson’s “Care Cost Benchmarks Toolkit” - 1/12/2025

Who Pays for Care?

Depending upon your personal circumstances, there are three main possibilities:

1. Local Authority Funding

Your local authority may contribute toward care costs.

However:

• A financial assessment (means test) is required
• If savings and assets exceed the threshold, you are usually expected to pay
• The family home may be included in the assessment (with some exceptions)

Many homeowners fall into the category of self-funding.

2. Self-Funding

If assets are above the threshold, individuals are responsible for paying their own care fees.

This often means:

• Using savings
• Selling property
• Drawing income from pensions or investments

Without careful planning, long-term care can significantly reduce an estate.

3. NHS Funding

In some cases, the NHS may fully fund care through NHS Continuing Healthcare.

This applies when one's care needs are primarily health-related and complex.

Eligibility is strict and must be assessed.

Planning Brings Clarity

There are ways to create certainty around care costs.

One option is an Immediate Care Plan (also known as an Immediate Needs Annuity).

It can:

• Guarantee care fees are paid for life
• Remove the risk of running out of money
• Protect part of your estate for inheritance
• Provide reassurance for the whole family

It’s not right for everyone — but when suitable, it can transform a difficult situation into a manageable one.

Speak to a Specialist

Understanding your funding options early can make a significant difference.

We provide clear, compassionate advice to help families:

• Understand their responsibilities
• Explore all available options
• Decide whether an Immediate Care Plan is appropriate

Book a no obligation care funding consultation or contact us today to discuss your family’s situation in confidence.