How releasing equity is helping over 55s with home care costs
3 February 2021
Concerns over the rising cost of care
Let’s face it, care isn’t cheap, and unless you’re a multimillionaire, one of your concerns for the future probably surrounds how you might pay for care, should you require it. If this is one of the worries on your mind, then you’re not alone; a study by Nationwide showed that 68% of those over 55 are worried about how they are going to foot their future care bills.
The Money Advice Service estimates that should you opt for home care, you’ll probably be paying ‘£15,000 a year, for 14 hours of care a week’ and the majority – if not all – of this, will have to come from your own pocket. The other option is going into a residential facility, but this could cost you considerably more (Age UK estimates the weekly cost is around £600, depending upon where you live in the UK). Significantly, evidence also shows that there are real advantages to growing old in familiar surroundings.
The benefits of home care
Some of the advantages of staying in your own home in later life include:
- Independence: Staying in your own home means you can continue to do the things you love, when you choose to. If you want to eat a bowl of cereal for dinner, you can!
- Keeping your memories close: Your home is much more than simply the place you live; it’s where you have lived, loved and laughed. It’s where you made memories.
- Quality of life: Keeping your memories close can lead to a better quality of life as you age – in fact, a study of people living with dementia found that those who stayed in their own homes enjoyed a better quality of life (measured by less need for walking sticks, more social contact, higher levels of activity and exposure to daylight and less use of psychotropic drugs) than those in care homes.
- Physical health benefits: Research shows that those in residential homes are three times more likely than those in their own home to have a fall.
- Mental health benefits: Research highlights that you’re less likely to suffer from depression at home than in a residential facility.
Releasing equity to stay in your home in later life
To be able to stay in their homes in later life, some homeowners over 55 are releasing equity to access some of the capital currently tied up in their property. The regulations involved with equity release mean you can never be evicted from your home, enabling you to stay there for as long as you’re able to continue living independently.
There are lots of different equity release products available, so it’s best to talk to a specialist adviser who can talk to you about whether releasing equity might be right for you, as well as the different products, ways to minimise interest, and how you want to access the money (either in instalments or in one lump sum).
Partnering with homecare providers
To enable as many people as possible to stay in their home in later life, 55Plus Equity Release is proud to be partnering with The Homecare People. Spencer Markham, Registered Care Manager, commented: “Having a sound strategy to finance home care is essential, as there is no doubt being able to afford care reduces stress for families and opens up the door to a wider range and quality of care options.
“At The Homecare People, we are keen to provide both our current clients and any potential clients with advice on funding for homecare. We can help them understand some of the more common support options; however, when it comes to issues like Equity Release, it can be rather complicated, so it’s important for clients to get expert, objective advice tailored to their individual situation.
“We have joined forces with 55Plus Equity Release to ensure our clients and potential clients receive the best support and that any advice given on equity release is the best advice for their personal circumstances. We look forward to working together.”
55Plus Equity Release founder and Managing Director, Jan Johnson, said: “I’m truly passionate about helping people achieve their goals through equity release, and releasing equity to pay for home care is something our expert advisers are very familiar with. I’m delighted at our partnership with The Homecare People, as it will enable us to support even more homeowners who want to learn more about whether releasing equity could help them stay in their home in later life.”
If you’re wondering whether releasing equity could enable you to afford the care you need to stay in your own home, then please contact us to arrange a free conversation with one of our expert advisers.