Workshop Agenda  about us  self funders – the issues  the need for advice  the options available  the care providers role  your questions

about us  wholly owned by Forrester Boyd Chartered Accountants  largest independent accountancy practice in the Humber region  one of the Largest IFA’s in the North Midlands

about us  specialists in all aspects of later life financial advice  care funding  equity release  wealth preservation  estate planning

about us  members of the Society of Later Life Advisers (SOLLA)  meets the need of consumers, advisers and those who provide financial products and services to the Later Life market  aim is to ensure that consumers are better informed about the financial issues of later life and can find an Accredited Adviser

about us  accountants for LinCA for many years  recently appointed as the recommended later life advisers for LinCA members  providing you with access to a range of member benefits

self funders – the issues  440,000 people in residential care  42% (185,000) are fully self funding  approx 25,000 homes sold each year to help pay for care  an estimated 4-5 million receiving some form of care at home & growing  Many of whom are either required to or choose to pay for their own care

self funders – the issues  no central register of self funders  no knowledge of how many self funders each year will fall back on state support  local authorities not proactive enough at assessment  care providers ‘hold the key’

self funders – the issues  many care providers rely on self funders in order to run a viable business  in everyone’s best interests for self funders to remain self funding for life

the need for advice  general lack of awareness  general lack of availability  meaning not enough take any form of professional care funding advice  even those who do often leave it too late

the need for advice  average cost of care;  Residential £500 p/w nursing £690 p/w  Domiciliary care £14 per hour (source Laing Buisson)  av gross income of a 75 year old £300 p/w (source DWP)  typical shortfall £10-£20,000 per annum  av length of stay in care 4 years  shortfall funded from capital

the need for advice  effectively a 100% tax on anything above £23,250  far greater impact than inheritance tax for over 97% of the population What do people want?  to be able to pay fees for life (in the home of their choice)  preserve as much capital as possible for their family

the options available  three fundamental options 1.do nothing 2.Invest capital for income 3.purchase a care plan (and invest surplus for growth)

the options available  Option 1; do nothing interest rates at an all time low renting family home often insufficient to meet shortfall neither are really an option (unless life expectancy is so short that any planning is impractical)

the options available  Option 2; invest for income most families are cautious by nature meaning options are usually restricted however nearly always a better outcome than simply holding all capital on deposit can certainly help slow down the rate of capital erosion keeps client in control, which can help to preserve more of the capital no guarantee though that sufficient yields can be achieved to pay fees, whilst also preserving capital

the options available  Option 3; C are Plan & invest surplus only way to guarantee that sufficient income will be available to meet the cost of care for life totally tax efficient capital can be replenished over time giving best of both worlds scenario risk of capital loss on short term death can be mitigated provides ultimate peace of mind income paid straight to care provider helping with cash-flow

the options available Which is the greater financial risk? living too long? or dying too soon? potentially both, depending upon the actions taken no-one can predict the perfect answer the need for advice is paramount to ensure people can make informed choices!

the care providers role  no-one expects you to give financial advice  however a “duty of care” exists to facilitate advice  such advice should only be given by a later life specialist adviser

the care providers role  we can work together in a number of ways to make this a simple and routine part of your service e.g.  by providing general literature  running advice clinics  making direct introductions

your questions?