Social care planning
What financial plans do you have in place that will bring lasting peace of mind to you and your loved ones during difficult times?
Compassionate guidance
At DG Financial Services Ltd, we offer clear and compassionate guidance on planning for social care.
What might bring you here?
A family member has recently needed care
You are worried about the cost of care
You are approaching retirement
You want to protect your children’s inheritance
You are confused by the system
Understanding the cost of care in the UK
The cost of social care varies significantly depending on the type of care needed (at home or in a residential facility) and where you live in the UK. However, it is consistently expensive. A place in a residential care home can cost tens of thousands of pounds per year.
Many people assume the state will cover these costs, but this is a common misconception. The local authority will only provide financial support if your capital and income fall below certain thresholds. This process is known as a means test.
How the means test works
When you apply for financial support for care, the local authority will conduct a detailed financial assessment. They will look at:
Your capital: This includes savings, investments, and in most cases, the value of your property.
Your income: This includes pensions, benefits, and any other regular income you receive.
The capital thresholds for receiving support are surprisingly low. If your assets are valued above the upper limit (which is different in England, Scotland, Wales, and Northern Ireland), you will generally be expected to pay for the full cost of your care. You are known as a ‘self-funder’.
If your capital falls between the upper and lower limits, you may receive some local authority funding, but you will still be expected to contribute from your capital and income. Only those with capital below the lower limit will receive the maximum level of state support.
It is also important to be aware of the concept of ‘deliberate deprivation of assets’. This is where a person is judged to have intentionally given away money or property to avoid them being included in the means test. If the local authority believes this has happened, they can still include the value of those assets in their assessment.
Strategies for funding long-term care
1. Care annuities (or immediate needs annuities)
2. Equity release
3. Investment products
How our service supports you
Planning for social care is not about being pessimistic; it is about being prepared. The earlier you start to consider your options, the more choices you will have. A well-structured plan can ensure you receive the quality of care you desire without sacrificing your family’s financial security.
The team at DG Financial Services Ltd has the expertise to guide you through this complex area of financial planning. We can help you understand your position, calculate potential costs, and explore the most suitable funding solutions for your circumstances. We don’t believe in one-size-fits-all solutions or generic advice that overlooks your personal circumstances and dreams.
What to expect when you work with us
Feel secure and supported with our carefully designed approach:
Initial consultation
We’ll start with a confidential, no-obligation meeting to listen to your situation, understand your concerns, and identify your immediate priorities.
Financial review
Our team will conduct a thorough review of your shared and individual finances to create a complete picture of your assets, liabilities, and future needs.
Strategic plan
We will develop a clear, personalised financial plan with actionable steps, helping you move towards financial independence.
Ongoing support
As you implement your plan, we remain available to answer your questions, adjust to any changes, and provide continuous guidance.