Being able to choose where we spend the last years of our life is something many of us strive for… so how can you give yourself the best chance of achieving that? By Tony Watts OBE.

One of the biggest concerns for most people in retirement is whether or not their savings and pensions will last their lifetime.  Even those with secure pensions will worry about what would happen if they were faced with unexpected bills, or hit with major expenses on their house.

And the biggest single concern for many is: will my savings last if I need to pay for care? No one wants to delay going into care when it really is the best choice for their wellbeing. Equally, neither does anyone wish to find they have to move out of their chosen accommodation because they can no longer afford the fees…

Care home fees can quickly eat into your resources, especially if an element of nursing is required. And Local Authority funded care is – when all said and done – a safety net for those unable to fund themselves. The system operates to very strict maximum fee guidelines that (in many instances) are below the level that are widely regarded as viable for care homes to charge.

Moreover, the stories that have appeared in the national media recently about local authority-funded residents effectively being auctioned off on line to the lowest bidder have hardly been reassuring.

So if you do need to plan or pay for care, how can you take action early enough to make necessary adjustments to your outgoings or investments to make sure that the money will last out?

Firstly, claiming all the available allowances is essential. The two non-means tested benefits that have the lowest available take up are the higher level of attendance allowance (worth £81.30 a week – but many people go in at the lower level (£54.45 p/w) and never ask to be reassessed when their health needs change) and the Registered Nursing Care Contribution (currently some £110.89 a week in England).

If you are paying all or even some of your own fees where you’re receiving care from a registered nurse or doctor, you might be entitled to assistance towards the cost of treatment. You will, however, not only have a need for this care but also be in a home that can actually provide nursing care.

Not every home does, and this can make a big difference to the level of care you receive – care which effectively could be free or at least subsidised.

Then there is the whole, knotty issue of NHS Continuing Care funding – see https://www.moneyadviceservice.org.uk/en/articles/are-you-eligible-for-nhs-continuing-care-funding not always well publicised, with cases often keenly contested by the NHS, but which potentially could make a huge difference to your finances. The basic criterion is that your needs are health rather than social; but if the medical condition is complex, and you have an expert in the field fighting your corner to contest your case, it could mean thousands of pounds a year.

Next: have you considered the possibility of a care fee annuity? There are several providers in the market who will assess how long a person is likely to require care and then offer to cover their costs for the rest of their life in return for a single payment. It is never a cheap option – the cost can easily be six figures – and yes, you are effectively taking a “punt” on how long you expect to live which might (or might not) prove a good bet longer term. But it does provide individuals and families with a fixed amount they can then work with and plan around.

Followed by: have you maximised your income? Taking sound advice from an independent financial advisor will be essential at this point – making sure your money is earning its corn… as well as taking any steps to minimise any Inheritance Tax liabilities.

Then, you really need to ensure that the home you are choosing is good value as well as offering the quality of care you need now… and into the foreseeable future.  Sites such as http://www.carehome.co.uk/ and www.eac.org.uk are excellent places to start.

Finally, once you have explored all the options to optimise or fix all your incomes and outgoings, the RetireEasy LifePlan will do all the complicated maths for you.

Just key in the new figures and you’ll see at a glance whether your assets will keep you comfortable in the years ahead – and for how long. You can then test out as many “what if” scenarios as you wish. That can include going into a more expensive care home; needing to move to a home with greater level of support at some point in the future; selling or renting out the family home to act as a source of income and so on.

It will, critically, highlight any shortfalls in income in the years ahead, enabling family members to decide ahead of time whether they would be prepared to top up the fee – or see you moved to a lower cost establishment.

But perhaps the biggest potential benefit the programme offers is reassurance. Most of us can, quite understandably, become anxious about the future. Knowing that the future is secure can provide real peace of mind, choose the home we really would prefer to move to, and perhaps encourage us to enjoy a few extra comforts.