Savings

I put an inheritance into an ISA bond and renewed it regularly, picking the best rate from the "safe" providers. In 13 years it has doubled in value, and it still sits there for care. Here, it is not far short of £70K mentioned, although DWP are expected to find c£40K of that at the moment. It pays for a new car, a plumbing emergency, and when/if DH goes before me, it will pay for a move, and if not, it will be a cushion for him (my biggest pension dies with me)
Another small pot of savings has been split between the children to help them onto the ladder, and we have given DGS a sum to help with furniture for his new home.

I have an acquaintance, who in her late 80s and childless was living a bit frugally - she applied for a couple of credit cards and ran them into many £££s and was gone before they caught up with her

I think saving is very important especially thinking of long term care if needed. None of us knows what lies ahead and if illness strikes and we're unable to look after ourselves then we could end up spending several years in a care home which will be very expensive. Paying for help at home I guess would also be expensive.

Graphite

How do you define a rainy day?

I would not define planning for future care costs as a rainy day but a major consideration for the last years of our lives that we all need to think about as we age.

A rainy day to me means a single event, an unanticipated emergency cost, for example, sudden but unavoidable household repairs, a leaking roof, walls or fences wrecked in a gale or a broken household appliance. Or maybe the car that you hoped would see you through to when you no longer wanted to drive can’t pass the MOT without major work that will cost more than the value of the car. You either pay for the repairs or buy a new used car.

£3,000 to £5,000 seems a reasonable sum to have set aside.

I agree with this and I do have some cash savings set aside for unexpected emergencies, but the rest of my capital is invested. We also have four children who seem to have more unexpected emergencies that we do, so keep more aside than you do so that we can lend them money to deal with their problems!

It's worth mentioning that you can save in a cash ISA and still have instant access, or in a stocks and share ISA with slightly slower access.

Only 2.5-3% of people over 65 live in care homes, and around 10% of over 85s. Most people manage at home, perhaps with carers coming in, or family, or they go straight into hospital and don't come home. As for saving, that entirely depends on personal circumstances - how much you have and how much you spend. If you invest an inheritance it should give you a return of greater than 10% per year, but what are you saving for? Do you have enough to live on currently? Do you have enough to see you through retirement? What are you saving for?

As regards Care Homes I think that if you need nursing care that is obviously essential - but dementia is the wild card.
I wouldn't want my husband or family to have to care for me if I was too far away with the fairies, though they'd probably be able to cope with milder incompetence which I probably display in day to day life now to some extent!

No savings here,so can't help

Razzy

Only 2.5-3% of people over 65 live in care homes, and around 10% of over 85s. Most people manage at home, perhaps with carers coming in, or family, or they go straight into hospital and don't come home. As for saving, that entirely depends on personal circumstances - how much you have and how much you spend. If you invest an inheritance it should give you a return of greater than 10% per year, but what are you saving for? Do you have enough to live on currently? Do you have enough to see you through retirement? What are you saving for?

Would appreciate if you can say where it's possible to get "a return of greater than 10% per year" please.

NB; I'd forgotten the exact percentage that land up in carehomes - but had read somewhere recently that it is only a very few - ie that 2-3%.

Maybe there's a lot of people out there who've lost out on large sums of money to other people and/or the government and who really couldnt mentally handle having another "Big Grab" from them?

I know I was figuring out how much expected/due money I've lost to various Big Grabs over the years (whether by the Government or my erstwhile brother) and readily came up with probably around £200,000 on a conservative estimate that I was due for that had a Big Grab done on it (lost salary, lost job pension, lost State pension - WASPI woman here, erstwhile brother grabbing for loads from me). I feel quite sick at just how much money has been stolen from what I was due for one way or another. I wouldnt mind so much if it had been my own carelessness or financial recklessness that had caused such a big loss - but it wasnt...as I've been pretty good with money myself.

I think some of us literally couldn't take another "Big Grab" going on from our money - in this case carehome costs. So I'd say that's part of why such a low percentage of us would tolerate our money going on carehome costs.

My neighbor's care home is almost £7000 pm. He had a sudden stroke and just about managed the care home fees. Has now had to sell his home. I have no idea what would happen when that money runs out

A rough calc for the two years is £168,000 and he had about £400,000 for his house, which might keep him in that nice care home for another 4 years.

Savings gives choices, he would not have liked to have been dumped in any old home

Many of our friends have recently had to pay for new knees or hips - rather than waiting out their last years in pain on the NHS waiting list.

I was at the dentist a few weeks ago and a gentleman was explaining to his wife that the dentist had said he didn’t have enough bone in his jaws to support false teeth and implants would cost between £10,000 and £20,000!

My daughter has just had to pay £12,000 for a hysterectomy rather than wait 3 years with a condition that meant she couldn’t work (or effectively look after her disabled daughter).

‘Rainy days’ are very expensive and there are a lot of them in old age.

Most care homes have both paying residents and those being paid for though. It's a myth that you have a better deal if you pay for yourself, in most areas anyway. A friend was looking at local ones for her mother, and they all charge around £1500 a week if you pay, but also take people funded by the state, and there is no difference at all in the rooms or service the different people receive.

In some ways, if there are things you want to do, you may as well pay to do them and let the LA fund your care if you are unlucky enough to need it - it won't matter to where you end up in most cases. Operations are a different matter. If you are comfortable with queue jumping, it is definitely a case of money talking.

Save as much as you can. Imagine your boiler breaks down, your roof is leaking, you discover rats have chewed through wires and the house needs rewiring, your water main leaks in your front garden, etc and all things not covered by insurance.
Have a holiday if you are still mobile as one day you might not be. Have 2 savings accounts ie one for long term savings and one for spending. HTH

Healthcare can indeed be very expensive - now we barely have an NHS anymore. It's very easy to have hundreds of £s getting taken out for even quite minor stuff. Even something as minor as an ingrown toenail that needs sorting out and the going rate seems to be about £300 privately. Bigger stuff - well I bumped into someone I know the other day and he said he'd been told he needed work on a knee and the choice was either £10,000 from his own money or wait 3 years. So he paid the £10k. I'm only too glad I have private health insurance - the peace of mind of "just in case I need it" - though I hope I never do.

I think - to some people - the "comfortable with queue jumping" comes down to how much they've ever had in total from the NHS. As someone who has never had a pregnancy or children, had to pay for my own sterilisation operation back in my 20's (or I'd probably never have been able to get it) and generally had very little from the NHS = I am angry at any of my own money having to go on paying an NHS bill - but would think "I guess getting what's needed quickly is fair enough - considering how very little I've taken over the years in healthcare. The payback for having so little done by them ever is 'I'm not going to wait for anything I need right away' ".

If I'd had a lot from the NHS - I could understand why it would be fairer to "let someone else go first" who hadnt had much (as far as I knew). I think it does depend on the circumstances personally imo.

I don’t see the point in hanging on to loads of savings without being morose I know people who retired at 66 and unfortunately passed away within 2 years. They never got the chance to enjoy there savings. I think having enough for an emergency ie new car, washing machine etc is enough. Just enjoy the rest you’ve got more years behind you than in front of you.

Doodledog

Most care homes have both paying residents and those being paid for though. It's a myth that you have a better deal if you pay for yourself, in most areas anyway. A friend was looking at local ones for her mother, and they all charge around £1500 a week if you pay, but also take people funded by the state, and there is no difference at all in the rooms or service the different people receive.

In some ways, if there are things you want to do, you may as well pay to do them and let the LA fund your care if you are unlucky enough to need it - it won't matter to where you end up in most cases. Operations are a different matter. If you are comfortable with queue jumping, it is definitely a case of money talking.

If you are funded you cannot choose they could send you anywhere in the country where there is a vacancy and they are few and far between at the moment. At least if you can fund yourself, you can search and hopefully find one which is near your family and offers nice surroundings, a room with ensuite and a view, a nice garden and all the other comforts we are used to at home. You will find it hard to get that if you are funded. I know what I choose as long as I can. The local councils buy block bookings in some of the care homes hence they get the very much cheaper price and yes self funders subsidised them or else they could not make ends meet.

I don’t think anyone has mentioned Deprivation of Assets.

If you (you generally, not specifically the OP) need care, whether in a Home or in your own home, unless you are self-funding, questions will be asked about any money you no longer have, eg if you have spent it lavishly or have given it away to your children.

There is no time limit as to how far back the local authority can look. The key question is did you spend or give away money, or your home, knowing you would be likely to need it for your care, or reduce your capital in order to be eligible to claim Pension Credit? That could be seen as Deprivation of Assets, and you would be treated as if you still had that money ie expected to pay your own costs.

crazyH

I find the need to ‘save’ once you’ve reached the age of 75, is absolutely unnecessary. Enjoy your money, be generous with the children . Money is for spending and cross the bridge of care-homes, when you come to it.

I agree with this . My dad spent £100,000 in a home in 2023 that’s just over a year .

My mum spends £5000 a month on home care .

The thing is if they hadn’t had this money the government would have paid for their care anyhow.

If you get poorly there is attendance allowance too.

Lastly when you really do need care there is c h c. The government will pay for everything.

These things are kept hidden from us . I’ve spent four years working this system out for mum and dad.
With regards to houses if one person is in care and one still is in the house then it can’t be touched.

But if no one is In The house after removal into care this will be used to fund the care.

The current system allows you to have 23,000 savings .

There are so many ways to get help so don’t panic be sensible but enjoy your hard earned money .

karmalady

My neighbor's care home is almost £7000 pm. He had a sudden stroke and just about managed the care home fees. Has now had to sell his home. I have no idea what would happen when that money runs out

A rough calc for the two years is £168,000 and he had about £400,000 for his house, which might keep him in that nice care home for another 4 years.

Savings gives choices, he would not have liked to have been dumped in any old home

Please get your friend to look into funded nursing care and continuing health care . Chc. Both government funds to help people in their situation both NOT MEANS TESTED .

Don't put it in a Savings Account. You may have to pay tax on the interest. Put it in an instant access ISA.

Juicylucy

I don’t see the point in hanging on to loads of savings without being morose I know people who retired at 66 and unfortunately passed away within 2 years. They never got the chance to enjoy there savings. I think having enough for an emergency ie new car, washing machine etc is enough. Just enjoy the rest you’ve got more years behind you than in front of you.

This was DD’s philosophy. He didn’t expect to last much past 70 and refused to spend money on the house.

Fast forwards 20 years. DD sadly died at 90, and DM (now in her 90’s) has had to deal with a series of house maintenance projects. She has coped remarkably but it has been a lot, and not finished yet. The house is more comfortable and pleasant to live in, but it’s a shame that DD didn’t get to enjoy the improvements. She has acquired a lovely dining set, sofa and bookcase second hand, charity shop curtains etc. Mum still has enough savings not to have to worry too much about day-to-day expenditure - she has always been a good money manager.

I would say to try to deal with house issues as they come up - they don’t get cheaper and don’t go away. But keep a perspective - perhaps buying some things second hand or just cheaper versions (of eg carpet) than you might once have chosen. Keep some money by for support with gardening, cleaning etc if your pension income isn’t going to stretch to these.

As far as care homes fees go, I once heard Steve Webb, the former minister and pensions expert, describe this as ‘a lottery’. He felt that the potential scale of the costs involved coupled with the unpredictability of the need/duration meant that it was impossible to make a sensible plan for care costs.

Graunty7

crazyH

I find the need to ‘save’ once you’ve reached the age of 75, is absolutely unnecessary. Enjoy your money, be generous with the children . Money is for spending and cross the bridge of care-homes, when you come to it.

I agree with this . My dad spent £100,000 in a home in 2023 that’s just over a year .

My mum spends £5000 a month on home care .

The thing is if they hadn’t had this money the government would have paid for their care anyhow.

If you get poorly there is attendance allowance too.

Lastly when you really do need care there is c h c. The government will pay for everything.

These things are kept hidden from us . I’ve spent four years working this system out for mum and dad.
With regards to houses if one person is in care and one still is in the house then it can’t be touched.

But if no one is In The house after removal into care this will be used to fund the care.

The current system allows you to have 23,000 savings .

There are so many ways to get help so don’t panic be sensible but enjoy your hard earned money .

Have you even tried to apply for CHC you only get it when you are end of life these days and that is not even guaranteed. Your parents hopefully had good care which they were lucky they could afford you have no idea what care they would have had without their savings. They certainly would not have had choices. Your mother would have had different carers every time never on time and some barely trained. Believe you me I know the system inside out too having been a carer for more than 20 years altogether. I still prefer to be self funding any day

win, you may be happy at the thought of ending up in s poor uality care home far from friendns and family - which is what can happen i you depend on the state to care for you.

Personally i can think of no better way of spending my money than on ensuring I can afford to be in the care home of my or my families choice in the position of our choice.

As for what is left when I die, well my children will benefit rom it and have a comfortable retirement. If I had no family I would find a charity I whole heartedly supported and leave it all to them.

What I have no time for is those who live in want, despite having a substantial sum of money in savings, because as they say, it has been put aside for a rainy day. One of my clients was a lady in her 80s, on a very small income shivering in a cold drafty unreliably heated house. her savings, which she wouldn't touch precluded her from getting PC. I pointed out to her that if she spent half her savings on insulating and double glazing her house and replacing her boiler she would ualify for PC and everything that went with it, help with Council tax etc. In fact be much better off financially than she was while clinging on to all her savings. I told her daughter, who though tit was an excellent idea, but this lady just sat there, freezing in an unheated house saying the money was rainy day money and refusing to accept that the rainy day had come.

CariadAgain
Your property hasn’t been built wrongly
It’s what is referred to as: non standard construction. There are over a million of them in the uk, not just your one in west wales.

MaggsMcG

Don't put it in a Savings Account. You may have to pay tax on the interest. Put it in an instant access ISA.

Are these totally rocksolid secure? When you know the financial system is clearly going to crash at some point before forever you don't want any "ifs and buts" at all about being able to get your savings back - whatever Society gets up to.

Would appreciate basic how-to info on them.

I have a friend who won’t spend because she
wants to leave her children a decent sum of money.
They are all in their fifties, all own their own homes and live well.
I cannot understand the logic, she will not be here to receive their thanks when they get their inheritance.
She likes to be well thought of by everyone.