Planning for later life

29th Jun 2018

The BBC recently reported that an influential House of Commons committee has recommended a new tax for the over-40s in England should be introduced, to help pay for elderly care for all. They have also floated the idea that retired people should also be made to pay it, if they have lucrative pensions or investments.

Later Life Planning

The contribution has been dubbed a social care premium by MPs and could then be used to ensure everyone who needs support in their old age gets it.

The idea has arisen as ministers are considering how to reform social care. Currently if you are deemed to be self-funding, only the poorest get help towards the cost of care, whether it is provided in people’s homes or in a care home.

Other people have to pay for it themselves, with one in 10 facing lifetime costs of more than £100,000.

People are either increasingly relying on family and friends or going without care altogether, which includes everything from help with washing and dressing to support in taking medications.

The appetite for a new tax has been mixed, even though only one in four people are in favour of using wealth tied up in people’s houses.

The recommendations from the commons committee reflect the issues we face surrounding the aging population in the UK and the importance for people to have their affairs in order when planning for later life.

The need for an up to date Will is of paramount importance for everyone in the family, along with having a Lasting Powers of Attorney in place to ensure the wishes of both you and your family are followed throughout your life.

Our experts in the Private Client team can also assist with the various options available to clients to try to protect and pass their wealth to their loved ones.