Article last updated 5 September 2026.
Care conversationsLater-life care planning is becoming an increasingly important part of retirement advice. This four-part series outlines the key issues advisers may want to discuss with clients when planning for future care needs, including funding, family impact and legacy considerations. |
The growing importance of later life planning
Clients are living longer and are more likely to require some form of care, whether at home or in a residential setting. Planning ahead helps reduce uncertainty and supports better outcomes for both clients and their families.
Care demand is rising, with costs continuing to increase and more individuals funding care themselves. This makes early, structured advice essential.
Understanding the cost of care
Care costs remain a significant financial consideration. Recent data shows residential care averaging around £1,300 per week, rising to over £1,5001 for nursing care.
In England, local authority support is means-tested. Based on current guidance, clients above the applicable capital threshold are typically expected to contribute towards or fund their own care. Different rules may apply in Scotland, Wales and Northern Ireland.
What has changed for advisers to consider
Proposed reforms such as a lifetime cap on care costs have been postponed or scrapped. With no current cap on eligible personal care costs, clients may need to plan for care costs that continue for an uncertain period. In this environment, care annuities can provide greater certainty over how future care costs are funded, increasing the importance of building robust funding strategies.
Key adviser conversations
Advisers should guide clients through key considerations:
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Preferred care outcomes and lifestyle
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Affordability and sustainability of care funding
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Impact on family and legacy
Starting these conversations early enables better alignment between retirement planning and later life needs.
Source:
[1] Social care - charging for care and support 2025 to 2026: local authority circular - GOV.UK
