If you live in Wales and need care, if your capital (including the value of your home unless a spouse or civil partner, or relative aged 60+ or who is incapacitated is to remain living in it) totals more than £24,000 if you need care at home, or £50,000 if you need care in a care home (2021/2), you will not qualify for any financial help towards your care from your Local Authority or health board.
This means you will have to a self-funder (unless you need nursing care in a nursing home - when you should qualify for a Funded Nursing Care contribution). This additional contribution (£179.97 in 2021/2) is then paid to your nursing home towards the extra costs involved in nursing.
Even if your personal savings and investments +50% of any joint savings or investments (if applicable) are below either £24,000 for care at home or £50,000 in a care home and qualify for maximum local authority rate, you will need to hand over all your income (including a pensions and most state benefits minus a small Personal Expenses Allowance (currently, £29.50 per week 2020/21) to them towards the fees. The only exception to this is If you are married or have a partner who needs some of your pension to continue living at home – when you will be allowed to keep 50% of any private pensions you receive.
If you need to pay for your own care, to ensure your care can continue indefinitely and your money doesn’t erode totally you should consider a Care Fees Annuity or immediate needs annuity.
In return for paying a single lump sum premium to a specialist insurer, an immediate needs annuity will guarantee to pay a tax-free monthly benefit indefinitely giving you peace of mind that care fees can continue to be met.
To find out how much one would cost, simply complete our quote request form.
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