The value of pensions and investments can fall as well as rise. You may get back less than you initially invested.
Equity release is a lifetime mortgage or home reversion scheme. To understand the features and risks, please ask for a personalised illustration.
We typically charge a fee of £350 and are also paid a fee by the lender - which is typically 0.35% of the loan amount. Alternatively you could receive the fee from the lender and pay us an equivalent amount. By way of example, if the loan amount is £200 000, this would represent a fee of £700.
Of today’s 50 year olds, men can look forward, on average to another 28 years and women to another 32 years. By 2021, it is estimated there will be over 12 million people aged over 65, an increase of 25% compared with today. Even the number of centenarians is set to more than double to 27,000 in 2021 (Government Actuaries Department). However, although we are living longer evidence suggests we are not staying healthier, therefore we can expect to spend more of our longer lives in poor health. According to PayingForCare, depending on where in the UK you live, care homes can cost an average of:
£28,500 per year for a residential care home
£37,500 per year if nursing is required
Government state benefits can provide some help, but this may not be enough or may not pay for the full cost of long term care. Currently, if you have savings and assets above £23,250 in England you will normally be expected to pay for the full cost of long term care yourself. By way of example, if you stayed in a Care Home and needed nursing in London for a period of 5 years, the current average cost is circa £228,000 (PayingForCare). There are a number of mechanisms for helping fund Long Term Care and/or protecting your estate against the cost of future care, which include:
Immediate needs annuities
Long Term Care can be a complex area of planning and Keystone Independent has the know-how to help you with this challenging task. We have in-depth knowledge and years of experience of funding care needs, whilst minimalising the cost burden on the estate and family.