Care home costs are one of the biggest financial risks facing UK retirees. Understanding the system and planning ahead can protect your assets and ensure you receive the care you need.
Average Care Home Costs UK (2024)
| Type | Average Annual Cost |
|---|---|
| Residential care | £35,000–£45,000 |
| Nursing care | £45,000–£60,000 |
| Dementia care | £50,000–£70,000+ |
Local Authority Funding
If your assets (including your home) are below £23,250, you may qualify for local authority funding. Between £14,250 and £23,250, you pay a contribution. Above £23,250, you are self-funding.
Planning Options
- Long-term care insurance — available but expensive
- Immediate needs annuity — can provide guaranteed care funding
- Property-based funding — deferred payment agreements with local authorities
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