If you’re working out how to pay for long-term care – for yourself or a loved one – an impartial care fees adviser can offer unbiased expert advice. Find out more about what they can do for you, how they’re paid and how to choose one that’s right for you.
Where to find a specialist care fees adviser
Personal recommendation from friends or family is one way to find a financial adviser. But even if you get on well with an adviser, it’s hard to judge in the short term how good a job they’ve done.
To find someone who can help you understand your options when paying for care, use our Retirement Adviser Directory
For other ways to find the right person for you, see our guide on Choosing a financial adviser
If you choose not to use a professional financial adviser, or if you want to explore your options before speaking to one, you’ll need to do your own thorough research.
Find out more in our guide Self-funding your long-term care – your options
Be aware that if you don’t take financial advice and the product you choose turns out to be unsuitable, you might have fewer grounds for complaint or compensation.
It’s a good idea to speak to a few financial advisers to see if they’re right for you. Most will offer you a free initial consultation, which is a great chance to ask some questions.
You can make a start by looking at what you should be discussing when finding a new advisor in our guide Key questions to ask your financial adviser
The role of a financial adviser
There are impartial financial advisers that focus specifically on care funding. They’re often referred to as specialist care fees advisers.
Regulated by the Financial Conduct Authority (FCA), they must follow a code of conduct and ethics, and take responsibility for the suitability of any product they recommend.
Unlike some advisers who are tied to particular providers, specialist care fees advisers can offer advice on products from across the whole market. They have specialist qualifications that prove their understanding of the many issues you might have to consider when it comes to funding long-term care.
If the care is for you, for example, a specialist care fees adviser will go through a fact-finding process. This will help them assess and understand your needs and circumstances.
Questions they’ll discuss with you will be about:
- your marital status
- your property ownership
- your attitude towards risk
- the location of family and friends
- the level of your care needs and the attitude of your family
- your health
- your current income, including unearned income, and benefits
- what State support you might be entitled to
- the care that’s currently available and what care will be needed in the future
- the potential cost of care at home or the care home you’ve chosen
- your assets, for example shares or other investments liable for Capital Gains Tax
- liabilities or debts that could reduce the value of your assets or your estate
- your mental capacity and making provisions for decision-making.
They’ll then recommend financial products and services that are suitable for you. They’ll put all this in writing.
Why might you need a specialist care fees adviser?
This might be the first time you’ve used a financial adviser and it can seem daunting.
But paying for care is complicated. It’s hard to understand all the rules and options without expert guidance.
And some options, such as equity release, are classed as so complex that the regulations state you must get advice first. You don’t have to follow the advice – but you should think carefully before going against it.
A specialist care fees adviser should help you find a way of funding your long-term care that’s:
- suitable for your needs
- affordable, both now and in the future
- compatible with your attitude to risk and your financial priorities.
Some self-financing options are quite straightforward, while others are much more complicated.
A specialist care fees adviser will help you to compare all your options before deciding which one’s right for you.
They’ll also be able to explain the costs and risks involved with each product.
They should be able to help with other things too. This can include arranging your will or a power of attorney, and advising you on benefits and support available from the NHS or local authority to help with your care costs.
Choosing the right adviser for you
Financial advisers have to be clear about the type of advice they give you, and follow rules on how they charge.
They also have to make it clear whether the advice they’re providing is independent or restricted in some way.
Restricted financial advisers might either be restricted in the type of products they offer, or the number of providers they choose from.
Independent financial advisers can recommend all types of retail investment products and pension products from firms across the market without restriction.
You might want to consider choosing one who can deal with a wide range of providers for the product they’re recommending – and not just one or two. That way, you know you’ll be getting the widest choice. Although, the quality and suitability of the advice you get shouldn’t be affected by which one you choose.
Make sure you understand the type of service they offer before you decide whether to get advice from them.
What will it cost?
Fees for financial advice can vary widely. They depend on where you live, the complexity of your situation, and the level of advice and types of products they recommend.
Many financial advisers offer an initial meeting free of charge. This isn’t designed to give you specific advice about your situation. It’s more of a chance to see how they work, how much they charge and to get a sense of whether you feel comfortable with them.
Fees can vary by hundreds of pounds so it’s worth getting more than one quote.
Find out more about fees and tips to get the best deal in our guide Financial adviser fees
How to make a complaint
If you do get advice and later find that the product wasn’t suitable, you could have a case for mis-selling and receive compensation. For example, if you were sold an investment bond when you were likely to need access to your money soon.
Every specialist care fees adviser will have a formal complaints procedure. You’ll probably find it in their Terms of Business when you first sign up with them. You’ll also have the right to make a complaint to the Financial Ombudsman Service.
