I have long argued that most older people have the financial solution to a better old age in their own hands.
(See my earlier blogs related to this by clicking on “EQUITY RELEASE” in the TAG CLOUD).
People of 65 own nearly £1 trillion in the value of their homes and nearly 80% of older people are home owners.
BUT, and there are lots of buts :-
- BUT most people want to stay in their homes;
- BUT moving is traumatic in later life;
- BUT I can’t get at my money;
- BUT why should I pay for care;
- BUT I want to leave a legacy for my children;
- BUT where can I move to that is better;
- BUT I am ok for the moment;
- BUT I don’t know how much I need in future;
- BUT I cannot insure for care ;
- BUT the Government says it will cap care costs;
- BUT the Government says I can keep my home;
- BUT Equity Release is expensive.
It is all these BUTS that are creating a blockage in the social care system for older people. Failure to solve the reservations mean that people hang on at home until a crisis occurs – usually ill health. At that point, other people take over :-
- Relatives maybe who care, cope for a while;
- a GP who applies sticking plaster prescriptions;
- Hospitals who may cure your immediate health condition;
- Social Services who only, if they have to, will pop in for a few minutes a day;
- The final step is your home is sold from underneath you to pay for care.
Best not to travel that path, though many do, falsely pressured by politicians’ promises that you and your house are safe in their hands. Politicians won’t tell you the truth for fear of losing your vote, but the final BUT is that as an 80 year old home owner, you are on your own.
Better to be proactive and use the value of your home to secure yourself a better future.
But is Equity Release an answer ?
See my next blog.