How Funding for Care Can Assist
Whatever the future direction taken by the government of the day two things are certain. The UK population is ageing and property will remain the main asset of many people.
With the costs involved in funding long term care and the shrinking number of people of working age, individuals who have the capital to contribute to care will have to continue to do so. The cost of care is also increasing faster than inflation and is only going to get more expensive.
The proposals outlined will generally mean that the government will contribute to the care of the majority of people. However those with adequate finances (most homeowners) will still be required to make a major contribution to their care costs and will still be expected to fund all their living expenses. This will be the case whether they pay monthly or into an insurance system.
This means that savings and property equity will still be needed to fund care. Property is a notoriously difficult asset to liquidate and therefore the Funding for Care service will remain an important tool in securing funding for care whatever form the national care service takes.
Partnership
Government will assist with some of the cost of care in more cases. However there would still be a substantial shortfall in many instances. Especially if high need care required, over a long period and in an expensive comfortable home. There are also the substantial costs associated with general living and accommodation expenses.
Insurance
Again a substantial lump sum may have to be paid which may require the sale of property. Should this be a voluntary system many may take risk of not taking out insurance and fall back on partnership option should they require care.
Comprehensive
Although it is unlikely that any government would establish a compulsory contribution, the service could still assist those looking to downsize and realise equity to pay the lump sum.
Funding for Care could assist in all these options by buying the property, releasing equity quickly and easily.