Ask the EXPERT

How are you going to pay for your later-life care? Q&A with Tony Müdd, Divisional Director, Development and Technical Consultancy, St. James’s Place Wealth Management

Q: What is financial planning for later-life health care and why is it so important?

A: One in four of us will require some form of care in later life, so it’s about making sure you have the ability to pay for it. It’s giving you the option to have the type of care that best suits you, rather than somebody else – a local authority, say – dictating what they believe you should have.

Q: Is there a good time to think about it?

A: The earlier the better, but it’s never too late to start thinking about it. The worst thing you can do is put your head in the sand or assume that the state will provide.

Q: Is it important to get expert specialist advice?

A: In this area I would say it’s more important than ever. Specialist advisers don’t just deal with financial planning – they can also help people navigate the social-care system, which is very complex. They can help assess what type of care people might need, what benefits they’re entitled to and how to assess 152 local authorities and more than 27,000 care providers. It can be a minefield.

Q: What do you need to look for in a financial adviser?

A: The Society of Later Life Advisers gives accreditation to financial advisers who specialise in this area. At St. James’s Place, we work with Care Sourcer to help people navigate the social-care system.

Q: What are the consequences of not planning ahead?

A: There’s a real chance you could run out of money, which isn’t just a financial issue, but means you’re not going to be able to leave anything to your children. You could also be asked to leave your current care home and move into a local authority-funded one.

Q: Do you need lots of money to afford later-life care?

A: Not necessarily. This is all about planning, so it might be about getting money out of your home with equity release or selling your home later on, using your assets rather than cash. You could also take out insurance to cover later-life costs. There is never a onesize-fits-all solution.

Q: Should I discuss my options with my family?

A: Definitely. Money and family is a tricky combination, but it’s an important conversation to have.