Provide income after retirement and minimise tax

kempiejon

I read the ONS stastics that about 3% of the over 65 populaton are in long term care. That's not to say any one individaul will go into care or not but most will not. We do aim for enough income and assets so that should be OK if the need arises.

Albermarle

kempiejon said:

I read the ONS stastics that about 3% of the over 65 populaton are in long term care. That's not to say any one individaul will go into care or not but most will not. We do aim for enough income and assets so that should be OK if the need arises.

Although I think the % over 85 is more like 10% and that probably skews that 3% figure.
I suspect that the % of 65 to 75 year olds in long term care is not much above 1 %

kempiejon

Within the 65 years and over care home population, 56.4% of residents were aged 85 years and over; this is a decrease from 2011, where 59.2% of residents were aged 85 years and over.

The biggest decrease in the proportion of the older population residing in care homes was among people aged 85 years and over, down from 13.7% in 2011 to 10.8% in 2021.

https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/ageing/articles/olderpeoplelivingincarehomesin2021andchangessince2011/2023-10-09

Nebulous2

It's complicated getting and interpreting the numbers, but roughly around a third of people will need a care home. That leaves two thirds that don't need one. 

A lot of stays are relatively short, but you get some outliers who will be there for over ten years. 

Cobbler_tone

Of course people end up long term in care homes but that is the exception as opposed to the norm in my experience. I’m at an age where I’ve had and seen a lot of real life experiences. It also depends on the specific support network.
I’ve seen children (retired) nurse their parent who have died at home. I’ve seen numerous that have died in hospital or at home after a short illness in old age. I’ve seen some who have short term care packages at home. Most have funded a bit of care, some get it for free and others are too stubborn to ask for anything.
I know one person in a home and they’ve been there a few years. The children lived the other end of the country and sold the home to fund it. No idea how much is left but it won’t be an infinite pot of money.
We’ll all know our personal situations.
I’m certainly not intending to save to the grave on the chance I need to fund one. I personally don’t think you get what you pay for. I’ll definitely cover the cost of my ashes through the letterbox. Enjoy your BH!!

Albermarle

Nebulous2 said:

It's complicated getting and interpreting the numbers, but roughly around a third of people will need a care home. That leaves two thirds that don't need one. 

A lot of stays are relatively short, but you get some outliers who will be there for over ten years. 

It is complicated because people will be dying along the way. So as well as it being more likely that someone over 85 will go into care home, approx 50% of the population will not actually make it past 85. So both issues bump up the % of people over 85 going into care home. 

MarlowMallard

I saw somewhere that average stay in a care home is strongly anti-correlated with age when you go in.  If you go in at 90 you're unlikely to last much beyond a year.  There's an unlucky minority who get e.g. dementia in early 70s when physically fit, and they can sometimes go on for 10 years. 

kempiejon

I read that half of all 90 year olds die before their 95th birthday. However 5% of 90 year old men get to 100.
https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/articles/lifeexpectancycalculator/2019-06-07

Linton

kempiejon said:

I read that half of all 90 year olds die before their 95th birthday. However 5% of 90 year old men get to 100.
https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/articles/lifeexpectancycalculator/2019-06-07

That may be the case now, but 90 year old men probably smoked, way well have had life shortening jobs, and would not have received the medical treatment now available..  The % of men in the next 20 years reaching 90 and beyond is expected to rise significantly

Albermarle

MarlowMallard said:

I saw somewhere that average stay in a care home is strongly anti-correlated with age when you go in.  If you go in at 90 you're unlikely to last much beyond a year.  There's an unlucky minority who get e.g. dementia in early 70s when physically fit, and they can sometimes go on for 10 years. 

You can even get it earlier than 70.
These are the ones who typically use up all their assets due to the duration of the stay.