Over 50s worry about losing home to rising care costs
7 October 2020
Worries about care costs
It’s no secret that the cost of care is rising. The Money Advice Service estimates that should you need to go into a care home when you’re older, you will be looking at spending around £27,000-£39,000 a year – and higher still if you need nursing as part of this. The Service also predicts that should you opt for care in your home, it would cost about £15,000 a year for just 14 hours a week, and upwards from £80,000 for round-the-clock domiciliary care. While some people may be able to access some government contributions towards this, the large majority of care costs will have to be self-funded.
A recent report by Nationwide has highlighted the fears shared by over fifties surrounding these costs. The report found that ‘two-thirds (66%) of homeowners over 50 worry about covering the costs of care’.
Significantly, ‘almost half (46%) expect to have to sell their house to afford to live in a care home’, a fear which is somewhat validated by the fact that ‘in the last 20 years, it has been estimated that more than 330,000 older people have had to sell their homes to pay for care costs’. This statistic is particularly noteworthy given that the same report found that 52% of older homeowners surveyed stated they would prefer to stay in their own home in later life and access care (should they need it) within their familiar surroundings.
Could equity release help?
One solution for older homeowners wishing to remain in their own home could be to release some equity from their house. Equity release works by freeing up some capital in your home, while you continue to live there.
The safeguards mean you can never be thrown out of your home, meaning you can continue to live in the home you love for as long as you are able. You can choose to receive your loan in instalments, as your care bills arise, which enables you to keep the amount of interest owed to a minimum.
Professional advice on releasing equity for home care
If you think that releasing equity from your property to allow you to stay in your home during later age is something that you’d like to consider, then getting expert advice is crucial. At 55Plus we encourage you to bring your loved ones to your meetings with our advisers, as our company is built on transparency and trust between our staff and clients.
At the moment, we’re offering socially distanced meetings with our customers, but if you’re still feeling a bit nervous about the current situation then we can offer virtual meetings as well.
Our founder and Managing Director, Jan Johnson commented: “It is disheartening to see so many people in my age category worried about the rising costs of care. Fortunately, I have seen equity release help many people in this situation and it might work for you and your household as well.
“There are lots of options you will want to consider when planning for your future, but if you want to explore equity release supported by honest and regulated advice, then one of our advisers will be more than willing to help.”
The rising costs associated with care are leaving many over fifties worried about having to sell their home in the future. If you wish to discuss releasing equity to allow you to continue to live in your home, then one of our advisers will always be more than happy to help.