Image courtesy of Pennsylvania National Guard

Many people have been brought up being told that it is important to save towards their retirement. However, with people living longer, the cost of care is now something that we need to think about as well and this could be even more expensive than simply giving up work. Although there is some government help available at the moment, there is no guarantee that this will always be the case and with funds stretched it may not be that good compared to private care options. It would be nice to think that as we age and if we need care, we will have the money available to be able to buy good quality care and have a high quality of life in our later years.

Although no one likes to imagine that they may need health care, many people do as they get older. It can therefore be wise to be prepared just in case and then you will not have any regrets as you get older. You will be able to afford the looking after that you need and if you do not need it, you will have plenty of money to give you a very comfortable time and to pass on to your children and grandchildren as well as the peace of mind that it is there if you need it.

As with retirement income, the sooner you start saving the better. You may want to put extra money into your retirement fund to cover any care costs or you may rather save it in a different place. It might be wise to speak to a financial advisor about this as they will be able to discuss the different options available and where it might be best to save the money required.

Knowing how much to save can be very difficult. When you are retirement planning you can calculate how much you want in retirement and how long you think you will need it for and work from there. With care costs it is much more difficult. You will not know how much care you will need and for how long. It is difficult to predict whether you will need care let alone what sort of care. You may need continuous care or just some help. You may be able to have it inside the home or need to be in a care home. If you go in a home, you can sell your home to pay for it, if you have one. But if you sell your home, then you will not have so much, if any, inheritance left which may not be a situation that you want to be in.

So consider what sort of care you want, if you would be prepared to sell your home to get it and perhaps do a rough estimation of cost. Start saving up as soon as possible and use a financial advisor to help you to choose the best place to invest. It is better to be over prepared than not prepared at all.