Do You Need Financial Advice for Elderly Care Planning?

Arranging care for an aging parent or relative often brings emotional strain and financial pressure at the same time. Families must make quick decisions about care homes, funding, benefits, and legal authority. Yet research shows that very few seek professional financial guidance during this process—even though many later wish they had.

A recent survey of 2,500 people found that only 11% of adults over 45 who helped organize care for an elderly relative used a financial adviser. At the same time, 66% of those who had arranged care said they would have appreciated a referral to an adviser. Overall, 59% said they would welcome the option of being referred to an adviser by their local council, according to retirement specialist Just Group.

Mitch Miller, senior care product manager at Just Group, explained:

“Currently financial advisers are not front of mind when people start looking for support and guidance for their later-life care planning but our research shows that, when prompted, most people are open to professional help to discuss their options.”

Freepik | Families often regret skipping professional financial advice when managing the stress of elder care.

These findings arrive at a time when the aging population is growing rapidly. The Office for National Statistics projects that people aged over 65 will make up a quarter of the UK population by 2050. Analysis by Age UK of ONS data also shows that more than 100,000 people will reach retirement age in 2026 alone.

As the number of older adults rises, more families will face the same question: should professional financial advice be part of the care planning process?

Care is expensive. The average residential care home in the UK costs around £600 per week, according to the NHS. Without state support, families often need to draw on savings, pensions, or property to meet these costs. That is where advice can make a real difference.

When Financial Advice Can Be Beneficial

Professional guidance is not always necessary. However, in certain situations, it can prevent costly mistakes and open doors to options many families do not know exist.

1. Access to Specialist Care Products

One major advantage involves access to specialist financial products.

Lucie Spencer, financial planning partner at wealth manager Evelyn Partners, points to the immediate needs annuity—also called a care annuity. This product pays a guaranteed, tax-free income directly to a registered care provider for the rest of the individual’s life.

Care annuities are complex and can only be recommended by regulated advisers who hold additional qualifications. Advisers charge a fee for this service. Yet for families seeking certainty over long-term care costs, this structure can provide predictable income and reduce financial anxiety.

2. Identifying Benefit Entitlements

Licensed advisers, including those at the Citizens Advice Bureau who offer free support, can help families identify benefits an elderly relative may claim.

One key benefit is Attendance Allowance. However, eligibility does not apply if a person lives in a care home funded by the local authority.

Advisers may also highlight:

– Funded nursing care, where the NHS contributes toward nursing home fees
– NHS continuing healthcare, which covers full health and social care costs for people with complex long-term health needs

Spencer notes, “By claiming these benefits, it can more than cover the cost of the financial advice itself.”

This guidance can prevent families from missing out on support they are legally entitled to receive.

3. Guidance on Lasting Power of Attorney

A lasting power of attorney (LPA) allows a trusted individual, known as an attorney, to manage financial affairs if someone loses mental capacity.

However, strict rules apply—especially around gifting. Unauthorized payments can trigger investigations by the Office of the Public Guardian. Funds may need to be repaid, and additional penalties can apply.

A financial adviser helps ensure that decisions remain compliant with LPA regulations. This reduces the risk of legal disputes and financial penalties during an already stressful time.

4. Structuring Savings and Investments

Care planning often requires reshaping savings and investments to balance access and growth.

Spencer explains that advisers typically divide assets into time-based categories:

– Short term (1–3 years): Lower-risk holdings such as bonds, with limited exposure to shares
– Medium term (3–5 years): Balanced allocation
– Long term (5+ years): Higher proportion of equities for growth potential

This structured approach allows immediate care costs to be covered while preserving other assets for future needs or inheritance planning.

When Financial Advice May Not Be Necessary

Freepik | Use advisors for complex planning and compliance, but skip them for high-income or temporary care scenarios.

Although advice can be valuable, it is not always cost-effective.

1. Short-Term or Temporary Care

If care is temporary—such as after surgery—families often fund it directly from existing assets. Spencer states, “If the care is short term or temporary then funding this from the individual’s existing assets is relatively straightforward.”

In some cases, the NHS provides intermediate care free of charge for up to six weeks after a hospital stay or to prevent admission.

2. When Income Covers All Costs

If an elderly relative’s income comfortably exceeds care home fees and other expenses, paying for professional advice may not make financial sense.

Spencer explains: “When an individual’s expenditure, including their care home fees, are more than covered by their income then it makes little sense to pay for financial advice.”

Complexity often increases when families need to sell property or restructure major assets. In straightforward cases, outside advice may add little value.

3. End-of-Life Situations

If life expectancy is very limited, the cost of advice may outweigh the benefit. Paying substantial advisory fees shortly before death can result in minimal financial impact.

How to Find a Financial Adviser

Recommendations from friends and family often provide a useful starting point. Personal referrals can offer insight into service quality and communication style.

Costs vary depending on the adviser and the complexity of the case. Fees may be charged as a flat rate, an hourly rate, or a percentage of assets managed. Since care funding can involve property, investments, benefits, and legal structures, pricing differs widely.

Before committing, families should request a clear breakdown of fees and services. Transparency helps determine whether the expected benefit outweighs the expense.

The growing number of retirees means more families will face the costs of long-term care, with residential homes averaging £600 per week. Planning ahead can ease financial stress and protect savings.

Financial advisers can provide access to specialist products, identify benefits, ensure legal compliance, and structure investments. However, advice may not be necessary for short-term care, sufficient income, or end-of-life situations.

Decisions on seeking professional guidance should consider the complexity of finances, available assets, and care duration. Families with clear information and timely planning are better positioned to manage care costs effectively.