Care bills may limit your retirement; your children may have to foot the bill.
Unexpected health-care costs might jeopardize retirement plans, according to new research, and many people may be unprepared. This is expected to affect both retirees and younger savers, and advice on how to meet care costs has been given.
Many people prioritize pension preparation during their working years, but care costs in later years may be overlooked. Unfortunately, according to new data from Hargreaves Lansdown (HL), many people may have to take severe measures to fund their parents’ care expenses.
HL just conducted a study of 2,000 persons and discovered the following:
The results were discussed by Sarah Coles, a personal finance specialist at HL.
“One in three people believe their parents will require professional care as they age, and a third of this group believes they will have to sell the family home to pay for it,” Ms Coles added. Given the possible expenses, it’s something we should all be thinking about.
“The price is higher than most people expect. Residential care costs around £600 per week, while nursing homes cost around £800. You can easily spend £1,000 per week if you live in a more costly region of the country or have specific needs.
“A few hours of care at home each week can save a lot of money, but live-in care can cost between £1,000 and £2,000 each week. When it comes to paying for care, there’s a reason one of the categories is “catastrophic costs” (when the total exceeds £100,000 in your lifetime).
“When asked how their parents would pay for it, the most common response was that they would use savings (45 percent).
“However, while this may cover a few hours of in-home care, most people’s funds would struggle to cover £50,000 or £100,000 each year. It’s one of the reasons why selling their home was the second most common response (30 percent).
“More than one-tenth of those polled indicated the council would have to foot the bill (13 percent). However, it’s critical to comprehend the circumstances in which the local government will foot the price, as well as what they’ll truly pay for. Meanwhile, over one-fifth of respondents stated they would have to pay for their own treatment (nine percent). Given the associated costs.”Brinkwire Summary News.”