My Gran and Her Care Home....

jamesd

0james0, from £200k invested it should be possible to generate indefinitely an income of around £12,000 a year. With gradual decrease in pot size £16,000 a year is doable. If the extra income need is greater than that there will be more significant pot size reduction speed. Trustnet's list of OEICs and unit trusts in yield order will give you some ideas. That's not the full investment return, just the interest/dividend payout.

le_loup wrote: »

I'm not sure that's right.

Unfortunately it is right: the average is in the two to three year range. You're right about all of the things that can't happen but by the time care is required there may be a host of other factors also present that affect life expectancy. This definitely doesn't apply to everyone, it's just averages, and you'd have to think of the individual and their own health. But for general planning, if health is a factor, it often can make it better for prospective beneficiaries to fund the care or part of it, knowing that that is likely to be a better deal than an annuity purchase. Someone who is merely frail is a very different situation from someone with advanced alzheimers and their second hip fracture.

Mojisola

0james0 wrote: »

The care home costs £2500 per month and she gets no help from the state.

Is she claiming all the state benefits that she is entitled to? They will go some way to paying the fees. After the house is sold, the interest on that capital will cover most/all of the rest, depending on exact figures.