workshop agenda
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Workshop Agenda. about us self funders – the issues the need for advice the options available the care providers role your questions. 0845 835 0112 [email protected]. about us. wholly owned by Forrester Boyd Chartered Accountants - PowerPoint PPT PresentationTRANSCRIPT
Workshop Agenda
about us self funders – the issues the need for advice the options available the care providers role your questions
0845 835 [email protected]
about us
wholly owned by Forrester Boyd Chartered Accountants
largest independent accountancy practice in the Humber region
one of the Largest IFA’s in the North Midlands
0845 835 [email protected]
about us
specialists in all aspects of later life financial advice care funding equity release wealth preservation estate planning
0845 835 [email protected]
about us
members of the Society of Later Life Advisers (SOLLA)
meets the need of consumers, advisers and those who provide financial products and services to the Later Life market
aim is to ensure that consumers are better informed about the financial issues of later life and can find an Accredited Adviser
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about us
accountants for LinCA for many years
recently appointed as the recommended later life advisers for LinCA members
providing you with access to a range of member benefits
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self funders – the issues
440,000 people in residential care 42% (185,000) are fully self funding approx 25,000 homes sold each year to
help pay for care an estimated 4-5 million receiving some
form of care at home & growing Many of whom are either required to or
choose to pay for their own care
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self funders – the issues
no central register of self funders no knowledge of how many self
funders each year will fall back on state support
local authorities not proactive enough at assessment
care providers ‘hold the key’
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self funders – the issues
many care providers rely on self funders in order to run a viable business
in everyone’s best interests for self funders to remain self funding for life
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the need for advice
general lack of awareness general lack of availability meaning not enough take any
form of professional care funding advice
even those who do often leave it too late
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the need for advice
average cost of care; Residential £500 p/w nursing £690 p/w Domiciliary care £14 per hour (source Laing
Buisson)
av gross income of a 75 year old £300 p/w (source DWP)
typical shortfall £10-£20,000 per annum av length of stay in care 4 years shortfall funded from capital
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the need for advice
effectively a 100% tax on anything above £23,250
far greater impact than inheritance tax for over 97% of the population
What do people want? to be able to pay fees for life (in the home of
their choice) preserve as much capital as possible for their
family
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the options available
three fundamental options
1. do nothing2. Invest capital for income3. purchase a care plan (and invest
surplus for growth)
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the options available
Option 1; do nothing• interest rates at an all time low• renting family home often
insufficient to meet shortfall• neither are really an option
(unless life expectancy is so short that any planning is impractical)
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the options available
Option 2; invest for income• most families are cautious by nature meaning
options are usually restricted• however nearly always a better outcome than
simply holding all capital on deposit• can certainly help slow down the rate of capital
erosion• keeps client in control, which can help to preserve
more of the capital• no guarantee though that sufficient yields can be
achieved to pay fees, whilst also preserving capital
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the options available
Option 3; Care Plan & invest surplus• only way to guarantee that sufficient income
will be available to meet the cost of care for life• totally tax efficient• capital can be replenished over time giving best
of both worlds scenario• risk of capital loss on short term death can be
mitigated• provides ultimate peace of mind• income paid straight to care provider helping
with cash-flow
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the options available
Which is the greater financial risk?living too long?
or dying too soon?
• potentially both, depending upon the actions taken• no-one can predict the perfect answer• the need for advice is paramount to ensure people
can make informed choices!
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the care providers role
no-one expects you to give financial advice however a “duty of care” exists to facilitate advice such advice should only be given by a later life specialist adviser
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the care providers role
we can work together in a number of ways to make this a simple and routine part of your service e.g.
by providing general literature running advice clinics making direct introductions
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