A strategic approach to protecting lifestyle, independence and legacy

Later-life financial planning is less about accumulation and more about control, resilience and choice. For many individuals, the focus shifts to ensuring that assets support the life they want to live – now and in the future – while reducing uncertainty for both themselves and their families.

A robust later-life plan brings together income, capital, tax, legacy and lifestyle considerations. It also acknowledges the possibility of future care needs, without allowing that single consideration to dominate every financial decision.

Shifting financial priorities in later life

At this stage of life, effective planning is typically centred on:

• maintaining lifestyle and independence

• ensuring income remains predictable

• retaining flexibility as circumstances change

• protecting wealth where appropriate

• reducing pressure on family members later on

This often requires reviewing not just how much wealth exists, but how it is structured, accessed and deployed over time.

Income, capital and liquidity

Later-life plans typically combine:

• pensions and investment income

• savings and capital reserves

Liquidity is a recurring theme. Families are best served when sufficient funds are accessible without being forced into rushed or reactive decisions, particularly at times of declining health or sudden change.

Planning for future care – realistic costs and informed choices

While not everyone will require care, it is an important and often underestimated consideration within later-life financial planning.

One of the most common issues we see is a lack of clarity around what good-quality care actually costs, how those costs vary by care model, and how they behave over time.

As a realistic guide:

• Visiting care at home offers flexibility and can be increased gradually as needs evolve. For a high-quality, reliable service with experienced carers and strong oversight, families should expect to pay around £35 per hour, with higher rates for unsociable hours, specialist or complex support.

• Live-in care at home is typically agreed as an inclusive weekly fee, based on assessed needs. In practice, live-in care usually starts from around £1,600 per week, rising to £2,000–£2,500+ per week where needs are more complex, specialist or require additional support.

• Residential care costs vary significantly by location and standard. In the South East and other higher-cost areas, families should expect fees to start from around £1,700 per week, with nursing or dementia care frequently exceeding £2,000–£2,500+ per week in higher-quality homes. Additional charges may also apply for services, activities or personal extras.

In lower-cost regions, fees may sit below these ranges, but the underlying principles remain the same: higher-quality care reflects higher staffing levels, experience and oversight.

How care is funded – understanding the landscape

Care in later life is funded in one of three main ways. Understanding these early allows families to plan proportionately and avoid unnecessary pressure later on.

Self-funded care

Many individuals will fund their own care, at least intially. Self-funding typically applies where:

• capital exceeds £23,250

• income exceeds the cost of required care

• individuals wish to enhance their level of care or retain greater choice

Self-funding generally provides the widest choice of provider, care model and flexibility, but benefits from careful financial planning to ensure costs remain sustainable over time.

Local Authority Funding

Once capital is reduced below the £23,250 threshold, it will be possible to apply for local authority funding. This requires a care needs assessment by your local adult social care team before they decide to what level they will agree to fund care.

Whilst the care fees are taken care of and so remaining assets preserved, you will have less (if any) choice over care provider and may not be approved for non-task based support such as companionship, or accessing the local community.

Local authority funding is assessed on the individual’s assets, not household wealth. While property may be taken into account in some circumstances, particularly for residential care, there are important disregards and protections where a spouse or dependent remains at home.

NHS Continuing Healthcare (CHC)

In some circumstances, care may be funded through NHS Continuing Healthcare, which is non-means-tested and based entirely on assessed need.

Eligibility depends on whether an individual has a primary health need, assessed against criteria such as:

• complexity and intensity of needs

• unpredictability of symptoms

• the level of clinical oversight required

The assessment considers areas including mobility, cognition, behaviour, continence, nutrition, medication and risk. A diagnosis alone – including dementia – does not automatically qualify.

Where awarded, CHC funding can be used to support care at home, and individuals are involved in decisions about how and where care is delivered.

Care models and cost structure

Care at home can be arranged under different models, each with distinct financial and practical implications.

• Fully managed care services provide oversight, continuity and contingency planning, with responsibility for recruitment, supervision, compliance and risk management sitting with the provider.

• Self-employed or introductory arrangements, for both visiting and live-in care, are typically lower cost but involve greater responsibility for the individual or family, including managing cover and responding to changes in needs.

Many families move between models over time as circumstances evolve.

Using property wealth as part of later-life planning

For homeowners aged 55 and over, equity release may form part of a later-life financial strategy.

Equity release enables individuals to access capital from their property without selling or moving home, either as a lump sum or through a drawdown facility. Funds may be used to:

• support ongoing care costs

• supplement income

• purchase a care fees (immediate needs) annuity

This can allow individuals to remain at home while accessing the value tied up in their property. As with all later-life financial decisions, independent specialist advice is essential.

Structuring finances for long-term certainty

For those who wish to plan more explicitly, specialist financial tools may play a role.

Care fees (immediate needs) annuities

A care fees annuity provides a guaranteed income for life towards care costs, following an assessment of health and care needs. Where payments are made directly to a registered care provider, this income is currently tax-exempt under HMRC policy and can be index-linked to help protect against inflation.

These products can offer reassurance and predictability, but they are complex and should only be arranged with specialist advice.

The importance of specialist advice

Later-life planning sits at the intersection of financial advice, tax, property and care. Working with advisers accredited by the Society of Later Life Advisers (SOLLA) helps ensure decisions are informed by expertise specific to this stage of life.

General financial advice is not always sufficient once care considerations enter the picture.

Planning with confidence

The strongest later-life plans:

• are realistic without being pessimistic

• retain flexibility as circumstances change

• integrate care proportionately

• prioritise quality of life alongside financial stewardship

Crucially, they are made early enough to preserve choice, control and peace of mind.

Join our upcoming webinar

To explore later-life financial planning in more depth – including income strategy, care options and funding structures – we will be hosting a webinar on March 9th 10.00-11.00am with SOLLA Financial Advisor, Daniel Kasaska

The session will offer practical insight and the opportunity to ask questions in a confidential setting.

This article is written by Wentworth Lifestyle Partner Trinity Homecare