Starting Your Nest Egg Late in the Shadow of Brexit

The Brexit vote reverberated loudly across Britain. We are still dealing with the aftermath of the shock of it all. Everyone was affected in some way but it seems none were more immediately affected by Brexit than those who have already retired.

Declining value in savings

As part of their savings strategy, many retirees had IRAs (Individual Retirement Accounts) and savings in the pound. Post-Brexit, they have seen their portfolios decrease in value when the pound fell after the Brexit vote. The decline in the value of the pound has largely levelled off at the moment, but the overall value of the currency has not rebounded. The consequence of this is many retirees holding IRAs that will likely not see growth for quite some time.

What if you’re behind on your retirement savings? How can you catch up in the shadow of Brexit when your time is getting short? Don’t despair: there are steps you can take to get your retirement back on track.

Protect what you have

No one can say for certain what Britain’s economic future will look like. No government exit plan has yet been unveiled. Those who have already retired or have begun a savings portfolio need to first take steps to protect the investments they have. The best way to do that is to diversify your portfolio. This includes investments in economies outside of Britain.

Increase your savings

You’ll need to put aside as much as you can if you’ve gotten behind on your retirement savings. You can calculate how much you can expect from your state pension and how much you’ll need to spend each year to maintain the lifestyle you want.

Once you have your figures in hand, look at how much you’re saving each month, then find a way to increase it by as much as you possibly can.

If your employer offers a pension plan, increase your contributions each month. If it is a plan that includes employer matching contributions, you need to put as much as possible into this fund.

Clear your debts

It is just common sense that your money will go further if you don’t have a pile of debts to pay on each month. One way to help catch up if you’re behind on your retirement savings is to pay off your debts as quickly as possible, then take the funds you would normally pay out to debts and add them to your retirement savings.

Downsizing can help

One strategy many people use is to plan to include the value of their homes as part of their retirement. Take a critical look at your home. Do you really need that much space in retirement? If not, consider selling it. Or converting all or part of it into rental property. Renting will give you an additional income in retirement.

With the final stages of Brexit still on the horizon and the continued uncertainty of the repercussions of that historic vote, the best course of action for the people of Britain is simple: don’t panic. Guard your savings through diversifying your portfolio. The rest of the best advice falls along a simple line of reasoning: use some common sense measures and you can weather this Brexit storm.

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Have You Budgeted For The Cost Of Looking After Elderly Parents?

As a ‘baby boomer’ (born in 1964) I knew that having children late in life meant I had to budget not only for my pension, but also for the costs of university fees for my children.

The costs of residential care are staggering

What I suspect many of us born in that era did NOT expect was that the costs of caring for our elderly parents would also fall to us.

This is not an issue whilst our parents remain well and able to live relatively unassisted in their own home.

But, once a care home is needed, the costs involved are staggering.

Currently the average cost of nursing home care in England and Wales is over £800 a week (or over £41,000 a year) per person.

This figure can be even higher in certain parts of the UK or where the elderly person’s needs are particularly severe or they need to go to a specialist Elderly Mentally Infirm home (for example if they have dementia)

There may come a time when we have to help our parents make some difficult decisions

As of April 2016, if a parent has assets which exceed the value of £23,250, they have to pay the full cost of their care and the family home will be included in the calculation of assets.

If their assets are below £23,250, they still have to contribute to the cost of their care from their capital until their assets fall to £17,000.

Once the £17,000 is reached, any extra income will be taken more or less in full to contribute towards ongoing care costs.

The total amount you may have to pay is currently capped at £72,000, but this amount is based on what your local health authority calculates the care is worth and does not include board and lodging costs.  You can find a good explanation here.

You can see that an individual’s entire life savings and assets can be spent in just a few months.

And what happens when the money runs out?

In the event that a parent suffers from a chronic, or life threatening illness, funding may be available from the NHS which currently offers Continuing Health Care Funding which will pay the full cost of care where the person’s need is primarily health based.

A second type of NHS funding called “funded nursing care” is available where the individual has nursing needs and is looked after in a registered care home that employs registered nurses.

Funded nursing care provides funding at a rate of £110.89 a week towards the person’s care costs which still leaves roughly £700 a week to pay.

Obtaining this funding depends, of course, on meeting stringent NHS criteria. 

For most of us, we are looking at the sale of the family property and relying on our parents' assets to be sufficient to give them the best quality care possible.

Once these assets have been used up, it is likely to be us who bear the financial burden, although some assistance may be available from your local authority.

You can see that if one of your parents needs to go into a care home but the other is well enough to stay put, there is a clear dilemma about whether or not the family home has to be sold.

Does the healthier parent come to live with you with all the extra costs that this would entail – extra heating, lighting and food costs, not to mention the cost involved in adapting parts of the home to make them safer for your mum or dad?

Balancing your monthly outgoings may be much more of a challenge and cut backs will probably have to be made. 

Should you need financial assistance to help your carry out these home improvements and adaptations, you can consider borrowing up to £7,500 with a guarantor loan from a credit company such as UK Credit loans.

A guarantor loan is a type of unsecured personal loan where you get a friend, colleague or family member to back up your application.  They must be someone who is willing to step in to pay your monthly repayments if you can’t pay.  You may find this additional safety net reassuring with so many demands on your purse from so many different directions!

We never know what is around the corner and I think it is sensible to have a conversation with your parents as early as you can about their wishes and the financial implications of requiring residential care.

Having looked into the funding of care home fees, I am aware that this is something I will need to research in much greater detail so that we can make some sensible financial decisions as a family. 

The information I have given here is the tip of the iceberg and, as we know from the 2016 Budget, schemes such as this are prone to be frequently changed and thesholds altered. 

This is a far better approach than having to deal with sudden illness or even a bereavement whilst trying to decide whether your parents’ home has to be sold or worrying where the extra money is going to come from. 

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Caring For Elderly Parents When They Still Live At Home

Watching the people that brought you into the world age isn’t nice. It is even worse when you have to care for them, but they want to stay at home. Everyone has the right to their opinion, and most of the elderly are of the opinion that they want to keep their independence. That is their right, but it makes your life much harder. The only thing you can do is respect their decision and try and care for them as effectively as possible.

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Doing that while you live in a separate house is never easy. In fact, it is a difficult process full of stress and jangled nerves. But, it is possible to achieve if you have the know-how. And, it is worth the effort. After all, they dedicated their lives for you – now it is your turn.

Modify Their House

One thing you should insist on is that the house needs modifying to their needs. If they want to stay at home, they need to compromise, and this is the first compromise. Again, the elderly don’t like making these changes because it is like admitting they are getting old. But, they are essential to their health. A stair lift or an adapted bathroom will improve their quality of life and reduce the risk of injury. When you visit sites like https://www.terrylifts.co.uk, you can see how easy it is to make it happen. There is a range of lifts and platforms for adapted homes, most of which are affordable too.

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Regular Visits 

Even with all of the newest mod cons, they are still likely to have a trip or a fall. That isn’t meant to alarm you, but you should be aware that there is still a risk. If they do have an accident, they will need physical help. If you visit them on a regular basis, you will be there for them when they need you the most. Plus, you can take the strain off their shoulders and make their everyday life easier. For example, you can bring them their groceries so that they don’t have to leave the house. Little things like that reduce the need for them to take risks which lead to injury.

Split Duties 

Still, you can’t do everything on your own because you are only one person. And, you have a family and a life to live too. If you have siblings, you need to make sure that they pull their weight when it comes to caring for your parents. They have a responsibility just like you, and they need to fulfil their duties. It is amazing having brothers and sisters that do their bit because you can balance your life with your parents. Some families even create plans so that they have every day covered. For example, you can see them on Mondays and Wednesdays, and your siblings split the rest of the week.

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Hire A Carer

Sometimes, caring for your parents is too much even with the help of the whole family. After all, you family doesn’t slow down just because your mum and dad are getting old. That is when you need to consider hiring a carer. A care assistant will visit your parent’s home when you don’t have the time. And, they are trustworthy people because they are industry professionals. This link will provide you more information www.agingcare.com. A good caregiver will make everyone’s life much easier. If you are worried about the money, you can get a grant or a government loan to subsidise the cost.

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Move In With Them 

When the situation gets that bad, you need to consider moving home. They won’t move because they want their independence. But, they might let you move in with them for a while. Most parents see it as their kids coming back home, not as you helping them out. Plus, no parent will stop their children from coming home because it is part of their DNA. It is a viable option as long as the house is big enough because you need enough space for everyone. The kids might not like it, and your partner might feel the same, but they will understand. You can do it for a year and rent out your home to see how it works. If it doesn’t, you can move home and think of a new plan. If it does, you should consider making it permanent.

Create An Emergency Plan 

You can’t be there for them all of the time, and that is when they tend to have an accident. When that happens, you need a plan of action. Everyone needs to know their job and what they should do if possible. For example, you should tell your parents they need to ring an ambulance and then ring you straight away. Or, tell them to press the emergency button (see modify home) to alert the emergency services. A plan is vital because it can be the difference between life and death.

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Suggest They Consider Moving 

They will only get worse as they get older. That is also true if they have a bad incident and need to visit the hospital. When that happens, you have no other choice but to make them see sense. No one wants to force their parents into a decision, but you do need to have a stern word. They need to know that caring for them while they are at home alone isn’t feasible anymore. They need to understand that they need permanent help, whether they like it or hate it. Only then can you start to give them the care they deserve. No one is saying that they have to move into a care home because they can move into your home. Then, you don’t have to disrupt your family’s life. A care home might be the option, but that is the final straw. Sometimes, assisted living quarters are available and they mix the independence and around the clock care.

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Caring for elderly parents is never easy. But, you have to do what is best for their health.

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Your Top Considerations When Choosing A Care Home For A Relative

Moving your relative into a care home is never an easy decision to make. But sometimes it has to be done. Here are the considerations that should be in the forefront of your mind if you are going through this process.

Staff 

The staff members that work in a care home are the people who your relative will come into contact with each day. You will get a chance to meet them and see them in action when you visit a care home, and this will probably influence your decision massively. No one wants to move their relative into a place that is staffed by people who are unhelpful or cruel. You should do research and read reports that often judge staffing performances on them. You want to make sure that you are not going to have any problems with the staff and their behaviour later on down the line.

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Facilities

The facilities that are offered in the home are also very important. This is what most people focus on when they are looking for a place to move their relative into. It needs to have the right care and medical facilities that meet your relative’s specific health needs and requirements. And you should also ask to see the private living quarters where your relative will be living. It’s not all about what’s on the inside though. Care home providers like http://hc-care-homes.co.uk/ also focus on the outdoors. Elderly people like to be able to get out and spend time outside of the care home. So, it’s good to move them into somewhere with large green spaces.

Costs 

Unfortunately, very few of us are able to simply move our relatives into the very best care homes. And that’s because the very best care homes come with a pretty large price tag attached to them. The costs are never cheap, and it’s up to you to weigh up the pros that the care home offers with the costs. Of course, there are many cheaper options out there that still offer a high-quality service. It’s not always the case that the most expensive places have the happiest residents. You should make a shortlist of places and then compare the prices of them all. You probably won’t be able to afford them all, so compromising will be necessary.

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Your Relative’s Preference

Obviously, all cases are different. But if your relative is in need of specialist care but is still able to take part in the decision-making process, they should have a say. It’s them that will be affected by the decision that is made, so it’s only fair that they have a say in the place where they will end up. They should be with you every step of the way when you are weighing up all the options. They should meet staff members, view the facilities and do everything else that I mentioned above. Before you even start to view the options, you should talk to them about what they want to get out of a care home. Then you can take it from there. Sites like http://www.payingforcare.org/care-home-fees offer more information on care home costs.

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