Care Costs 'Are Big Financial Burdens' For Brits

The expense of keeping an elderly relative in care is on track to rise dramatically, according to recently-released figures.

The expense of keeping an elderly relative in care is on track to rise dramatically, according to recently-released figures.

According to a study released by Saga, it was claimed the typical cost of a four-year stay in a care facility is set to approximately double over the next 20 years. Currently standing at 112,312 pounds such fees are to hit at 223,476 pounds in two decade's time. The increase was attributed to inflationary rises - which are at a current rate of 2.5 per cent - and fees of care home, going up by 3.5 per cent.

For those consumers who are already struggling with their finances, such an increase in care costs could put pressure on their capacity to manage other demands on their spending. Such areas may well include personal loan repayments, credit and store cards, utility bills and mortgage costs.

The organisation went on to point out that paying for care may be the "biggest financial burden" many Britons face. Putting the figures into context, it stated that the average property currently costs 181,810 pounds - the equivalent of three years' care for a couple.

It was also claimed that many of those who are paying for the care of a loved one do not seek guidance from qualified financial advisers. As a result, the firm suggested that an unawareness of the various options which are available to them, such as state benefits, could result in "devastating" consequences should their relatives have to move out of a home that they feel settled in due to a lack of money to pay for care fees.

Commenting on the figures, Andrew Goodsell, chief executive of the Saga Group, stated: "Those faced with funding care now will already know the extent of that financial burden, however preparing for the future cost of care is an issue few people want to consider. With the cost of funding care expected to consistently increase above inflation, it's critical that those already paying for care, or those planning for the future ensure they take advice from a fully qualified adviser."

In addition, it was claimed that life expectancy levels are increasing, with the average 60-year-old woman expected to live for another 29 years. Meanwhile, a man of this age is set to be alive for a further 26 years. At the moment just under a fifth (17 per cent) of those over the age of 85 are in need of long-term care, although it was suggested that more consumers may require such support in the future.

Britons looking for a competitive way to fund keeping an elderly relative in a care home facility may wish to consider taking out a UK personal loan. By taking out this type of loan it is possible for borrowers to meet the expense for looking after a loved one quickly and effectively, leaving them with affordable low-rate monthly repayments to make.

A cheap personal loan may also be of assistance for consumers looking to get their finances back on track, although it may be advisable for prospective borrowers to be honest about their intentions. Earlier this year, research carried out by Abbey Loans indicated that 1.35 UK loans have been taken out in secret. Worth a total of 7.7 billion pounds, the average loan was indicated as standing at 5,720 pounds per person. Over half of such borrowers were shown to be using a loan to consolidate their debts.

About the author: Abbi Rouse writes for All About Loans where visitors can apply for a loanonline and also focuses on adverse credit loans , and loans for consolidating debts for UK Homeowners.