T
he sum of £1 million is synonymous with a jackpot, but on the topic of care costs it is one lottery you would rather not win.
As a rule of thumb many financial advisers suggest budgeting £100,000 a year for care costs in later life, based on today’s prices. The wealth manager Charles Stanley advises planning for care in the final three years of life — a total cost of £300,000.
But care prices have risen steadily over the past decade and show no signs of slowing. A 50-year-old woman today can expect to pay £970,000 if they live in a care home for the last three years of their life, until they are 92.
An average 60-year-old man who lives until he is 89 could pay £667,000, according to Charles Stanley. In each case it is assumed that they exceeded their average life expectancy by five years and care home prices rose an average of 3 per cent each year, although recently it has not been unusual for providers to increase their fees 10 per cent in a year.
