Planning for Later Life: Why Families Should Start the Conversation Early

Most families don’t begin thinking about care funding until a crisis forces the conversation. A hospital admission. A diagnosis. A phone call that changes everything. By that point, the financial decisions that need to be made are significant, the timeline is short, and the emotional weight is immense.

We recently sat down with Jamie Clay, a Senior Financial Planner (independent financial adviser) at Pembroke Financial Services who specialises in later life planning, to understand what those decisions actually look like, and what becomes possible when families don’t wait until the last moment.

What families are up against

The most common assumption Jamie encounters is that the state will cover care costs. It won’t, for most people. Anyone with assets above £23,250 is typically expected to fund their own care.

“People often don’t realise how expensive care can be,” Jamie told us. “Specialist dementia care in the South East can exceed £85,000 a year. Many families have never had to think about how that would realistically be funded.”

That gap between expectation and reality is where families get into difficulty. Not because they haven’t planned at all, but because nobody told them what they were planning for.

What good advice actually looks like

Jamie described a family he worked with whose mother had moved into residential care after her property was sold. They had funds. They didn’t know what to do with them. The question they kept asking was the one he hears most often: what happens next?

Rather than presenting a list of products, Jamie worked through their specific situation with them. The option they explored most carefully was a long-term care annuity — a financial arrangement that converts a lump sum into a guaranteed income paid directly to the care home, for the rest of a person’s life. It removes the uncertainty of not knowing how long care will be needed or what it will cost.

The family had concerns about committing a large sum if their mother’s health declined quickly. That’s a reasonable concern, and Jamie didn’t dismiss it. Instead, they arrived at a blended approach: part of the funds went into an annuity to cover the core fees, and the family retained some capital separately. Security without surrendering all flexibility.

“It’s about helping families understand the pros and cons of each option and making decisions that feel right for them,” Jamie said. “Often the greatest outcome is simply giving people peace of mind.”

That family left the conversation knowing exactly where the care fees were coming from, for as long as they were needed. Their mother’s place in the home was not in question. They could focus on visiting her, rather than worrying about the bill.

Why timing matters more than people realise

Jamie is clear on this point: the earlier a family starts these conversations, the more options they have.

He works with clients in their 50s and 60s who are nowhere near needing care but want to understand what their choices might look like. For those families, the options are wider. Products that combine life insurance with care protection. Trust structures that preserve assets while keeping them accessible. Equity release, assessed carefully and in context.

By the time someone has lost mental capacity, or is being discharged from hospital with no plan in place, many of those options are no longer available.

There is also the question of legal protections. Two documents sit at the foundation of any later life plan: a Lasting Power of Attorney for Property and Financial Affairs, and one for Health and Welfare. Without them, a family that needs to act on a loved one’s behalf may face a court application that takes months and costs thousands. Jamie has seen this happen. He has experienced a version of it personally, supporting a close relative through a sudden health crisis. It sharpened his view that these conversations need to happen well before they feel urgent.

One more thing families often miss

NHS Continuing Healthcare — where the NHS funds care in full because of a primary health need — is widely misunderstood. Many families expect to qualify. Very few do.

“The criteria are incredibly strict,” Jamie said. “It’s important families receive clear guidance so they understand what support may or may not be available.”

Getting that guidance early avoids a painful reckoning later.

What changes when families plan ahead

The families Jamie works with who plan early share something in common. They have more say in what care looks like. More of them are able to stay at home longer, with the right support around them, rather than moving into residential care before they need to. They choose their care rather than accepting whatever is available at short notice.

“When people plan ahead, they often have more flexibility around the type of care they choose and where they receive it,” Jamie told us.

At Home Instead, that flexibility is something we see directly. Families who have their finances organised are better placed to build a care arrangement around the life their loved one wants to keep living, close to home, close to the people they know. Financial planning and care planning are not separate conversations. They belong together.