Average retiree can only afford seven months care
The average pension pot of a retiree would only be able to pay for seven months of residential care, according to research from Prestige Nursing and Care.
Care home fees have increased by 5.6 per cent since 2011; more than double the rate of inflation.
The average single room in a residential care home now costs, on average, £27,404, up £1,451 year-on-year. An average shared room comes in at a slightly cheaper £26,137 per year. However, both options wildly surpass the average income of a pensioner of £13,208.
The South West of England is now the most expensive region for care home fees, overtaking London. Care home fees in the South West, London and the East of England have now broken through the £30,000 per year barrier. The South East of the country has edged ever closer to the £30,000 mark with an average cost of £29,849.
Jonathan Bruce is the Managing Director of Prestige Nursing and Care:
“The government has announced a cap on care fees of £35,000 which most of us in the industry have been lobbying for for some time.
"However accommodation costs, which make up the lion’s share of residential care fees, wouldn’t be included in this cap meaning older people are still heavily liable and may need to pay significant amounts of money in later life.
"For those who are slightly younger, factoring in possible care fees into their savings is a good idea. For older people who may need care in the shorter term, homecare is an option and is included in the cap. However, for those who require residential care immediately, they will unfortunately have to grin and bear these costs.”
However, people who have been paying for care with a health need may not have to “grin and bear it” as they could be eligible to reclaim care home fees.
Content correct at time of publication