Funding the care

Will my savings be enough for my child's lifetime care?

This is the question the other two lead to. It is answerable, and the answer is more useful when it is specific than when it is reassuring.

The short answer

You can answer this properly, and the method is a comparison rather than a calculation. On one side, what lifetime care is likely to cost, built from your own recurring expenses and projected across the years care will be needed. On the other, everything genuinely available to meet it: savings and investments earmarked for your child, property intended for their benefit, life cover that would actually pay out, and any income they receive in their own right.

Two disciplines make the comparison honest. Only count what is genuinely committed — a house you also intend to live in, or a policy whose premiums may lapse, is not a reliable asset for this purpose. And compare like with like, in real terms, so that a corpus earning a nominal return is not silently credited with growth that inflation takes back.

Then test it. The central case is the least informative version of the answer. What matters is whether the plan survives the plausible bad versions: care needed for longer than expected, paid support required sooner, a poor first decade of returns, or an unexpected housing cost. A plan that only works in the good case is a plan that has not yet been checked.

For most families the honest first answer is no, or not yet. That is a finding, not a verdict — and it arrives with a size, which is what makes it actionable.

What changes the answer

What parents often miss

What a shortfall actually tells you

A couple believe they are in reasonable shape: a paid-off flat, steady investments and a life policy taken out years ago.

Compared properly against their son's projected lifetime care, there is a real gap. Two things caused most of it. The flat was counted twice — as their retirement security and as his care fund. And the life cover was sized against a much smaller and much shorter assumption than the projection they had just built.

Neither problem needed a new investment strategy. One needed an honest decision about which job the flat is actually doing, and the other needed a cover review. The gap did not disappear, but it stopped being mysterious, and two of the levers turned out to be within reach this year.

What to do next

Care Cost Planning puts the projected need and the existing provision side by side and shows the gap between them. Change the assumptions that worry you most — duration, care inflation, when paid support begins — and watch whether the plan holds.

Free, no sign-in, nothing saved. Download the report to take to an adviser.

Related planning areas

Important

This page explains how families think about the arithmetic of lifetime care. It is not financial, investment, insurance or tax advice, and LegacyNest does not recommend products, schemes, allocations or providers. A projection is a consequence of the assumptions you give it, not a forecast of what will happen. Talk to a qualified financial adviser before acting on any figure you produce here.

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