Our own elderly care ...

[ByQuaintAzureWasp]

Early 60s and I have no money set aside for my twighlight years if I need care. I do have about 100k in savings which I intend on spending and I will have a retirement income of about 50k before tax. Also co-own a house worth 500k.

I have no plans for what will happen if I need to go into a care home.

What are others doing about this?

You’re similar to my dad who is in good health but 85. He has enough cash for about 1 year of care, then he’d have to sell his house. That would cover the average 2 years in a home but not much more. Thereafter he’d need council support. I’m not expecting much of an inheritance!

Only a small proportion of people go into a care home.

You would be better off future proofing your own home, or moving into a flat/bungalow and thinking about housekeeping, being near public transport so you can stay independent and get to appointments etc.

Very few people go into a care home.

I would use your money to buy a property that will suit your needs as you grow older.

Mid 60s here. Looking to move or future proof current property ( walk in shower downstairs, potentially convert one room into a bedroom - but would rather move.
Have an advance directive and POA in place.

Reasonably healthy lifestyle so I hope to retain mobility, but who knows if Dennis will hit.

We have no dc, so hoping my practical and dispassionate niece will pick a reasonable care home if the time comes

Agree with future proofing instead. We live somewhere where we can walk to places like Doctors/Dentist and Pharmacies and a train station and bus route. Not everyone needs care either as others have said. Have 2 relatives in their nineties who still live at home. One is in at home and the other in a retirement village which again had good facilities and transport links.

We have one more house move planed early 60’s following retirement, then a move to sheltered accommodation early 80s, then if needed we have enough money for both of us to go into a care home for 10 years or 24hr live in care. We are not planning on relying on our kids for care - they will be free to live their lives. If we don’t need care - they’ll be very well off but we will not struggle, or budget to leave a big inheritance. But this is all a bit like a birth plan and anything might happen to change things completely.

Generally speaking people spend less than 2 years in a nursing home. You'd have enough for 8 with your share of the house (assuming your 100k was spent)

Theoretically what would happen is that your pension would pay for the home and the shortfall would come out of the property, possibly after you and your partner both die (assuming it's shared with a partner).

In practice what would happen is that if the nursing was a nice one they would want proof you could pay 2 years fees. You really don't want to go to a not nice one. It is already quite competitive to get a place. I imagine that will get worse as the bigger section of the population ages.

Maybe you should spend the £100k but put aside £500 a month into a SIPP pension. You can still get tax relief til you are 75 so you'd only lose £400 a month from your net income. That could replenish the £100k you want to spend.and provide what the nursing home need.

As you can see, everyone is going to downsize so personally I am planning to do it earlier rather than later.

I’m planning on downsizing way earlier than in my 80s. Very few people I’ve known would manage a house move at that age.

Agree though that very few people actually do need care and your house would pay for a significant time.

I’ve a plan to move into a nice apartment, right in town, with parking, ideal for shopping/carer visits if need be and a nice balcony for dining in the sunshine.

Staying put while there are two of us. We’ve identified where to put the indoor lift as stairs are unsuitable for a stairlift. Close to hospital, gp, shops, station, buses, carers. Good transport links wherever the kids end up. Then when there is only one of us whoever is left will downsize with the help of the kids.

We are serial declutterers, poa in place, wills in place, and I have a very clear advance decision that everyone knows about.

As pp said not that many do go into care homes. Of mine and dhs relatives only 2 did out of about 10 and each for only 3 to 4 months.

If you have under the 23k threshold of savings and no property then you won't have to fully pay for your care.