Later-Life Care Planning

The Finance Planner doesn’t have a dedicated “care costs” field — and that’s intentional. Care needs vary enormously and are impossible to predict precisely, so the best approach is to build a financial cushion and then stress-test what a care scenario would actually look like. Here’s how to do both.

STEP 1 — BUILD A RESILIENCE BUFFER (Module 5)

A straightforward first step is to hold a higher savings balance than you think you’ll need for day-to-day spending. This buffer sits in your ISA or savings pot and is available if care costs arise.

1. Go to Module 5 — Savings & Investments.
2. Review your ISA and savings balances.
3. Consider whether you want to target a higher balance at retirement to give yourself a care contingency.

The Module 10 projection will show how long that buffer lasts alongside your other spending — giving you a clearer sense of how much cushion you actually have.

STEP 2 — MODEL A CARE SCENARIO (Module 8)

To see what a specific care cost would do to your plan, add it as a Life Event in Module 8. You can model it as a lump sum (e.g. a care home deposit or adaptation costs) or as a recurring annual cost from an assumed age.

To add a recurring care cost:

1. Go to Module 8 — Life Events.
2. Tap Add Life Event and choose Recurring Expense.
3. Enter an annual amount (residential care currently costs roughly £40,000–£70,000 per year depending on location and type of care).
4. Set a start age — for example age 80 or 85.
5. Leave the end age open, or set it to the end of the projection.

To add a one-off care cost:

1. In Module 8, choose One-Off Expense.
2. Enter the amount and the age at which you’d expect it to fall.

You can add multiple events to model different scenarios — for instance, a period of home care followed by residential care.

STEP 3 — CHECK THE IMPACT (Module 10)

Once your care scenario is in place, go to Module 10 — 25-Year Projection. The planner will show year by year how the additional costs affect your assets. If a pot runs negative, the planner flags it clearly and links back to the relevant module so you can adjust.

Use Module 7’s live sliders to quickly test what happens if you retire later, reduce spending, or increase your savings — without permanently changing your plan.

A NOTE ON CARE COST ESTIMATES

Care costs are highly variable and depend on location, type of care, and personal circumstances. The figures above are illustrative — for a more detailed picture, sources like Age UK and the Money and Pensions Service publish current average care cost guides. If care funding is a significant concern, a financial adviser who specialises in later-life planning can help you model your specific situation.

RetirePlan — retireplan.co.uk | Using 2026/27 UK tax rates | This tool provides guidance only and does not constitute regulated financial advice.