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Clarke Nicklin Financial Planning

'protecting your wealth and helping your investments grow'

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February 2017

Positive planning for old age – Making provision in a way that meets your needs and wishes

As a population we are living longer, and with an ageing population the need for care is growing, with the time spent in care increasing. However, a fifth of the UK have no idea who will look after them if they have care needs in old age, according to research released from Bupa. Nearly three quarters think they will have care needs in older age, but only around half expect their family to care for them.

Recognising needs and desires

 

The survey reveals that old age is a regular consideration. Professor Graham Stokes, Global Director of Dementia Care, Bupa says: ‘The perception that older people aren’t valued by society is concerning and needs to be addressed. The proportion of people over 80 is expected to increase almost fourfold over the next 50 years.

 

Living a fulfilling life

 

Despite concerns about getting older, people are optimistic that they can still live a fulfilling life, with the majority of people believing old age will not stop them living life to the fullest. As we age, our preferences and personalities remain individual, which is why, if care is required, it should be provided in a way that meets our needs and wishes.

 

Covering the cost of assistance

 

Long-term care insurance provides the financial support you need if you have to pay for care assistance for yourself or a loved one. It can cover the cost of assistance for those who need help to perform the basic activities of daily life at home or in residential or nursing homes. 

 

Level of state support

 

Government state benefits can provide some help but may not be enough or may not pay for the full cost of long-term care. The level of state support you receive can be different depending on where you live in the UK.

 

There are many options for funding long-term care, and they can often be complicated to understand. So if you or a loved one needs to pay for care at home or in a care home, it’s important to know the options available.

 

Enhanced annuities – you can use your pension to buy an enhanced annuity (also known as an ‘impaired life annuity’) if you have a health problem, a long-term illness, if you are overweight or if you smoke. Annuity providers use full medical underwriting to get a more accurate individual price. People with medical conditions including Parkinson’s disease and multiple sclerosis, or those who have had a major organ transplant are likely to be eligible for an enhanced annuity.

 

Thinking about the options in advance

 

Some people may find they have to make quick and difficult decisions about their own or a loved one’s care needs. Thinking about the options in advance will help in the long run.

 

If you would like to discuss your particular situation, please speak to Jon Neild who holds the Long term care and equity release qualification from the Chartered Insurance Institute on 0161 495 4700.

 

Source data:

 

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,139 adults. Fieldwork was undertaken from 26–29 February 2016. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).

 

Reduce the long term cost of your mortgage

The last thing you want to think about is parting with more of your hard earned cash but it can be advantageous.

IFA and mortgage advisor Jon Nield from Clarke Nicklin Financial Planning highlights the benefits of chipping away at your mortgage payments.

He comments ‘Taking on a mortgage is tough. Whether you have saved to buy a new house or re-mortgaging, it can put a strain on finances alongside utility bills and other living costs.

‘A few years in, once everything has settled down, it’s well worthwhile considering overpaying your mortgage as there can be huge long term benefits.

‘If you have had a pay increase or just have more disposable cash it may be the time to consider it. Just a small amount could have quite an impact to significantly reduce the term, and long term payments.

‘By paying as little as £75 a month extra over 20 years on a £150,000 mortgage (interest rate calculated at 3.5%) could save you just over £7,000 in interest alone and you would pay off the debt just over two years early. And, at any time you can reduce the payments back to the original payment

‘Ensure though that you are aware of any early repayment fees which some lenders may charge. ‘

Ideally sit down with your mortgage advisor to ascertain the best approach. If you need any help or assistance with your mortgage please do not hesitate to contact Kath on 0161 495 4700 or email katha@cnfp.co.uk.

 

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. Think carefully before securing other debts against your home.

Clarke Nicklin Financial Planning is a trading name of CNFP LLP, Company Number OC324909 and is authorised and regulated by the Financial Conduct Authority.

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