Income For Care Fees

Creating income for long-term care fees

When a loved one goes into care, it's usually because of ill-health. How to pay for the cost of care can be a real problem, and choosing the right solution can help.

It would be nice to think that the person’s income, including pension income and income from investments, would be enough to cover the cost of long term care fees. However, this is rarely the case.

Very often, savings and investments are depleted rapidly to top up the nursing home fees. The person going into care is rarely happy that this is going to happen, and can worry that they will be left with little or nothing to pass on to the family.

Of course, if health deteriorates very quickly, the drain on resources may not be total. However, sometimes care can be needed for many years. The longer the period the greater the drain on investments.

In order to bring a degree of certainty to the amount of invested assets that are used to fund care fees, it is possible to arrange an annuity, which will create a regular flow of income throughout life that will help to fund the costs of care.

Advice in this area is vital since annuities come in many forms. Choosing the right annuity and arranging it in the right way can result in the income produced being relatively high and totally free of income tax. This can mean a reduced drain on precious resources.

Contact us for further guidance.