Welcome

Welcome to the Mike Robertson Associates Ltd Lifestyle Planning Blog. Here we share tips on how you might be able to make changes to your lifestyle and making plans for the future.

How Long Will I Live? - Planning For Later Life

How Long Will I Live? - Planning For Later Life

How long are you planning to live?  Are you hoping to reach 100 years old? Reaching 100 is more of a possibility now than it ever was before. You can be a healthy and mobile 100, too.  Look at Captain, now Colonel Tom doing laps around his garden.

How Long Will I Live? - Planning for Later Life


 According to the ONS tables, the percentage of people making it to 100 has nearly tripled since 1981 and is expected to double again by 2068.

How Long Will I Live UK - Life Expectancy Calculator

Managing Your Health in Later Life

You might be fit as a fiddle now, and hopefully it stays that way, however, in your later years, your health becomes more vulnerable. Just as you plan how to keep yourself healthy and active, so you can do all the things you enjoy, you also may want to look at planning for your health deteriorating.

Even if your ambition is to remain living independently, you could find you still need assistance from outside carers, which you could be paying for yourself.

If you are lucky enough to reach a grand old age, bear in mind that your children could be in their sixties as well.  They will have their own families to consider and possibly health issues to deal with, meaning they may not be able to support you in the way you need.

You also may need to consider how you would pay for long-term care costs should you be unable to live independently and need to move into a care home.

What is Long Term Care Planning?

Long Term Care Planning is the logical and objective preparing for the need of different levels of additional care as you get older depending on an individual’s current health and personal care needs. It takes into consideration the individual’s current income and assets and expected earnings over time using cash flow analysis.

 

Long term care is centered around an individual’s health or personal care needs which could cover either short or long periods of time.  Providers of care will ensure that someone can live with the appropriate care around them whether that be living on their own or in a care home environment.   

 

Examples could include living independently, living in a care home or even visiting an adult day care centre.  It is hard to predict what type of care you may require in the future and your health generally plays a big part of the decision that both you and your family may make.

 

If a decision is made to move a loved one into a care home, you will also need to consider what this means for the relative that is left in the house alone.  How will they cope with living on their own, particularly if their life up until now has been spent looking after someone.  You need to consider their health after any decisions have been made as well.   

How Much to Set Aside for Long Term Care

The amount of money you need to have set aside for long term care is specific to the individual.  However, some assumptions can be made based on statistics.

 

At age 65, on average, men can expect to live almost 9 more years and women almost 10 more years. Unfortunately, approximately 40% of everyone over the age of 65 suffers from a limiting or long term illness or disability.

 

According to one study, the average number of years people over the age of 65 require a low level of care is five years, medium levels of care is 3 years and high levels of dependency is 2 to 3 years.

 

Therefore, it is important to review your long term financial plans and if you do not have a financial plan in place, then you should begin to think about it.

Costs of Care

Domiciliary Care (home visits from professional carer)

Day Care - £10 - £30 per hour

Full Day Cover - £45 - £200 depending on hours and amount of care

Overnight Care - £100 per night

Live-In Care (professional carer lives in your own home)

£750 - £1200 week

+£25 - £50 week toward carer meals

Assisted Living (private living space with 24 hour a day support available)

£500 - £2000 week

Care Homes (Residential living usually in a communal and professional setting)

£50,000 - £60,000 year

Managing Your Finances

The world changes considerably over our lifetime, and as we age, it becomes harder to keep up with new technologies and the way things are done compared to when we were younger. You probably use online banking all the time, check your account balance on your phone, pay with your contactless debit card – you can even use your phone to pay for goods. This way of doing things is something that the older generation has had to adapt to, and as you age, it becomes more challenging to do so.

Changing technology coupled with things like failing eyesight could mean that you find yourself needing help with managing your finances.  Planning now for who you would like to have acting as power of attorney, means that you remain in control of your finances. So, if you suddenly have a deterioration in health later in life, such as a stroke, you can be confident that your finances are being managed in the way you would like them to be.

Rising Age of Retirement

The age at which you can accept your state pension has been raised to 66. In the future, we may potentially be working into our seventies before receiving a state pension.  However, some experts believe that to afford a retirement lifestyle similar to those enjoyed by previous generations we might have to work into our eighties.

The impact of this means that if you are unfortunate enough not to be able to continue working in later life due to ill health or employers are not offering enough opportunities for older people, then you could find yourself in an awkward financial position.

In your twenties and thirties, you may be thinking that you don’t need to worry about saving for retirement as you have other things to prioritise like student loans, credit card debt, etc. However, this lack of planning for retirement could lead to you not having enough money to live comfortably later in life.

https://www.gov.uk/state-pension-age

Do You Know the Cost of Your Retirement?

If you are saving into a company pension scheme via your employer, you may assume that the provision you are building up will be enough to allow you to enjoy your ideal retirement lifestyle and you have done all the retirement planning you need to do. However, do you know how much money you are going to need to have the lifestyle you want after you finish working? What is the figure you need to aim for?

Most of us are considerably underestimating, with Saga research indicating that four in ten over forties have no idea what retirement will truly cost. Meaning your good intentions could still leave you with not enough money to retire comfortably.

Regularly Review Your Plans

It is essential to periodically discuss, evaluating your lifestyle and financial plans for later life to ensure that you are making decisions that will support your retirement vision and lifestyle goals. Regular reviews will also highlight where you may have a shortfall in expectations and give you time to address the situation.

If you are not sure how much money you might need or what you need to put in place for later life, then you may want to consider seeking lifestyle financial planning advice. A Lifestyle Financial Planner can help you create a plan, providing advice and guidance on all the areas you need to think about. They will support you to ensure that you have a brighter financial future and enjoy your later years as much as you enjoy life now.

We are regulated Lifestyle Financial Planners specialising in all aspects of financial and retirement planning, including pension planning, planning for long term care costs, making a will and estate planning.

Based in East Sussex, we service clients across the South East, Sussex and Kent, including smaller towns such as Ashford, Battle, Bexhill, Bodiam, Brighton & Hove, Cranbrook, Crowborough, Eastbourne, Hailsham, Hastings, Heathfield, Herstmonceux, Lewes, Mayfield, Newhaven, Rye, Seaford, Sevenoaks, Tenterden, Tonbridge and Tunbridge Wells.

Sources: 

https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/lifeexpectancies/bulletins/pastandprojecteddatafromtheperiodandcohortlifetables/1981to2068#how-long-can-you-expect-to-live

https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/ageing/bulletins/estimatesoftheveryoldincludingcentenarians/2002to2016, 

https://www.saga.co.uk/newsroom/press-releases/2017/march/four-in-ten-of-over-40s-have-no-idea-of-the-cost-of-retirement

 

Click to download our Retirement Guide

 

Based in East Sussex, we service clients across the South East, Sussex and Kent, including smaller towns such as Ashford, Battle, Bexhill, Bodiam, Brighton & Hove, Cranbrook, Crowborough, Eastbourne, Hailsham, Hastings, Heathfield, Herstmonceux, Lewes, Mayfield, Newhaven, Rye, Seaford, Sevenoaks, Tenterden, Tonbridge and Tunbridge Wells.

 

Tags: Retirement Lifestyle, older generation, Retirement Planning, Saving for Retirement, Elderly Care, living longer, Financial Adviser East Sussex, planning for retirement, Long-Term Care, later life retirement planning, later life financial planning, planning for later life, long term care costs, planning for long term care, paying for a wedding, later life, long term illness, care costs, lifestyle finnacial planning, later life planning, saving for long term goals, later life forecasting, retirement home

Sign up For Our Blog Posts

Follow us on Social Media