Feeling financially and emotionally responsible for the welfare of both children and parents can feel like being caught between a rock and a hard place.
Financial advice can be invaluable in finding the best, and most affordable solutions to long term care for those you love.
At a glance:
- Many of us are facing the reality of our parents needing some form of social care – but don’t realise that financial advisers can offer practical and emotional support, as well as working out the finances.
- Your financial adviser will know the right questions to ask, who to speak to and guide you to the right information when looking for affordable later life care.
- Our specialist Care Concierge service, can help match your personal family circumstances with the best care for your loved ones.
Helping our parents find and fund the best later life care is something millions of us can relate to. None of us know if, when, or what kind of long term living support our parents – or indeed, we – might need in the future. It can be a sensitive subject – so no wonder many of us find it difficult having the conversation.
It’s an emotional decision, but also a financial one. Paying for care itself can be a real concern. But financial advice can give you all peace of mind that you’re choosing the right care, at the right time – and that it’s affordable.
The many faces of later life care
Later life care solutions come in many forms. Most of us don’t know all the different options that are out there, or who has the right information.
Some of us will want to stay living independently for as long as possible – perhaps downsizing and moving closer to family. Others may explore alternative arrangements such as in-home care, assisted living facilities, residential care or even moving in with family members. Each option comes with its own benefits and considerations.
Understanding how the care system works, who to speak to, whether or not you’re eligible for any state support can be a minefield – and trying to navigate all of that without professional support is doubly challenging. But one thing is certain – it’s right to think ahead, start planning and talking to your adviser.
In conjunction with Karehero, our Care Concierge service offers, a confidential and expert social care advice that helps you understand the support and options available to you, the type of care most suited to your needs and help you find the best options in your area. If necessary, they can put a care package together in 24 hours and guide you through every aspect of social care.
Once you know you’ve got your loved ones comfortable, settled, and confident they can afford what they’ve chosen, you can go and enjoy things together – like family holidays, or meals out.
Why it can be hard to talk about social care
Sometimes, the things we most need advice on are the things we speak about the least. When it comes to talking about things like later life care, it can be doubly hard. Three quarters (6.1 million/74%) of adults aged 40-60 thinking about caring for or supporting an older parent in the future say they would find it stressful.1Many parents don’t like to admit they’re struggling – and anxious adult children don’t want to seem like they’re prying, or hurrying them out of their family home.
As individuals, most of us only face this dilemma once, or at most twice in our lives. But an adviser who’s looked after clients for 25 years may have guided many clients through this life stage. Almost 1,500 SJP Partners (one in three) across the UK are licensed long-term care specialists – and many may have been in this situation themselves with their own parents.
Most importantly, financial advisers that specialise in care can support you both practically and emotionally, offering options you may not have been aware of.
Putting the finances in place
Once you’ve decided on the right level of social care, the next inevitable question is affordability. Social care costs can burn through savings – and no crystal ball will tell us how long we might need care for. According to the Office for National Statistics inflation tool, nursing homes now cost an average of £1,176 per week, or £61,252 a year, almost twice as much as the average salary before tax and up 10% from last year.2
Many people assume that the state will pick up some, if not all of their social care bill, but even a relatively modest level of savings can mean that you may fail the means test and need to self-fund. If you do need to contribute to the cost of your social care, specialist financial advice can help you find the most tax efficient way to do so – and ensure you don’t accidentally fall foul of any of the complicated rules and regulations.
Tony Clark, Senior Propositions Manager at SJP says: “Financial advice needs to paint a bigger picture these days. It’s no longer a transactional, product-dominated process. More and more often, you’re advising families, across generations. Not just individuals.”
People-focused financial advice
In our recent Real Life Advice Report, which surveyed 12,000 individuals, 65% of respondents confirmed that advice had improved their quality of life, rising to 75% for those who receive ongoing advice. financial advice and financial wellbeing go hand in hand. 3
We can help you
When you’re faced with situations and big decisions financial advice can be invaluable. Having a financial plan in place, and someone on your side, can make all the difference. Get in touch if you need a helping hand.
The services offered by Karehero services are separate and distinct to those offered by St. James’s Place.
Sources
1 Age UK – 26 June 2023
2 Office for National Statistics inflation tool – March 2024
3 The Real Life Advice Report was commissioned by St. James’s Place. Opinium surveyed 12,000 UK adults between May and August 2024. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population. Guantative data referenced is sourced from the first poll which had a total sample of 7,995 respondents.
We’ve looked at the impact of all forms of professional financial advice and guidance – from that offered by a financial advice firm or individual (including a wealth manager), an independent financial adviser (IFA), a qualified financial planner, to advice received through a bank and building society. We have also looked more broadly at understanding the impact of the help people receive through organisations such as Citizen’s Advice, Pension Wise and others.
SJP Approved 26/03/2025