Many older people prefer to live in their own home in their old age, in familiar surroundings, where they have more freedom and privacy, especially when their relatives and friends visit them. However, they are not able to do many activities like meal preparation, shopping, writing and reading independently. Hence they will require a caregiver who will help them in their daily activities. In case the senior citizen has a health condition like dementia, stroke, Parkinsons he will require additional assistance from the caregiver. In many cases, the senior citizen does not have enough income to pay for the caregiver, so he would like to find out the caregiver financial assistance options available.
Senior citizens income
Typically a senior citizen will have some savings in the bank or elsewhere, so he will get some interest income. Additionally if he has invested in shares or other assets, he may also get some income from the shares in the form of dividend. The senior citizen may be living in his or her property, so does not have to pay rental. The senior citizen may be also eligible for an attendance allowance of GBP 3000 annually. While this income may be sufficient to pay for the living expenses of approximately alone, they are usually not sufficient to pay for the caregiver expenses, which can be as high as GBP 50000 annually.
Usually to pay for the caregiver, the senior citizen has to make approximately GBP 30000 annually from the other assets. These assets are
- Bank savings
- Other investments
Though the money in the bank is comparatively safe and can be accessed whenever required, at present the interest rates from savings are very low. So the senior citizen will have to consider other investment options. Usually the returns from investment vary depending on the risk involved. The stock market investments are very risky resulting in loss of principle, so most senior citizens will avoid investing in shares.
The mainstream mutual funds are considered low risk, and they usually give better returns than the bank savings. However, these returns may not be sufficient to pay for the care giver. Many people invest their money for a period of three years or longer, and then do not review their investment. Often some investments are not giving good enough returns, since they are not managed well. Hence it is advisable to spend some time, reviewing the different investments, to find out which investments are not performing well. Then the senior citizen can consider transferring funds to the better forming investment. There are also care fee annuity schemes which can purchased by paying a cheque. However the annuity will stop when the person dies.
Most people have invested a large amount in their homes, and they can use this investment to pay for their caregiver fees. They can sell their home, to live in a cheaper and smaller home. Alternately they can opt for a equity release scheme or reverse mortgage plan which is offered by many banks to senior citizens, wherein they receive monthly payment for mortgaging their home.