1. LIN Extra Care Annual Conference
Paying for care in later life
December 8th 2011
John Payne ExtraCare Charitable Trust

2. What we do Housing with care in villages
For anyone – rent, buy, shared ownership, with or without care and support
3500 residents
1500 staff

3. Vision and Mission Vision Better Lives for Older People Mission
To give older people an independent, safe and secure future in a network of inspirational communities

4. Extra Care housing – Key facts
Currently % care home residents are state funded
Includes previous Owner occupiers who ‘rent accommodation’- in care home
80% of retired people owner occupiers own 1 trillion of housing equity – growing
Development has slowed in sector due to lack of capital funding

5. Leaseholders – Key facts
Asset rich – revenue poor
80% of retired people owner occupiers own 1 trillion of housing equity & growing!!! - Older peoples Ave house value =£231,300 v £160,000 Ave – whole population
Average pensioner household net income £17576 in 2010
Circa 70%of our leaseholders get assistance with costs – Service charge

6. Our experience – Funding Care costs
Do you worry what will happen in the future if you need care and support?
*81% said YES
Have you made any financial provision for any future care needs you may have?
*81% said NO
* ExtraCare research: Nottingham

7. Facts about care
50% of people aged 65 today can expect to pay £20,000 on care in a lifetime.
25% can expect costs over £50,000
10% can expect costs over £100,000
* Commission on Funding of Care and Support July 2011

8. Dilnot & beyond White paper?
Cap of £30,000 or £50,000 for care not housing related costs
Higher threshold for savings taper relief
< £100,000
Likely need for equity release till cap is reached

9. Dilnot & beyond
An alternative view – Increase minimum savings floor to £50,000 rather than current £14, cheaper!
Future generations will have lower housing equity, pensions and higher debts

10. Extra Care Charitable Trust solution :-

12. Purpose of today
Introduce you to a new concept available to residents at Shenley Wood Village
Unique approach following 6 years of research and development
Based on research with people like you in other Village areas
Addressing the issue of planning and funding your future needs for care and support in later life

13. Care for Life
Created in response to the worries many people have about being dependent on the state to fund their care.
7 out of 10 local authorities rationing support to those with ‘critical’ or ‘substantial’ needs
An agreement between you and ExtraCare which ensures you get the care you need, at your home in the Village, for as long as you live.
Providing you with independence, security and peace of mind
Enabling you to get on with living your life

14. Example prices Option 1 – Pay in full
Age 75
Age 83
Couple Age 75 and 83
OPTION 1
OPTION 2 or 3 +
OPTION 2 or
OPTION 3
UPFRONT
£39,514
£32,392
£57,524
INITIAL PAYMENT
£23,708
£19,435
£33,407
NOW & ANNUAL
£960
£1,267
£1,781
NOW & IN THE FUTURE
£1,129
£1,440
£2,055
Option 1 – Pay in full
Option 2 Part payment and an annual premium
Option 3 Part payment and an annual payment deferred until surrender of the lease.

15. Some immediate questions
Why a discount for couples?
Are any conditions excluded?
What if I live for 30 years and inflation means costs have gone up?
What happens if you cannot provide the care I need?
When can I start benefiting from Care for Life