Joyce's Story Cont’d
PAGE 3CP VOLUME 1, ISSUE 2
income and her expenditure.We wrote a report for Susancovering all of the variousways that Joyce's care couldbe funded. After much dis-cussion it was agreed that animmediate care plan(icp) andinvestments would be theideal solution.An immediate care plan pro-viding a benefit of £1,280 amonth for Joyce's lifetimecost £49,000. We included abenefit increase of 5% each year to meet the likely in-crease in the care home fees.A cautious investment portfo-lio was also put in place for£45,000 and the balance of£56,000 was placed in bankdeposits.Joyce says that the care planhas given her great peace ofmind. She no longer has toworry about running out ofmoney because her incometogether with the benefitfrom the care plan shouldmeet her care costs for herlifetime. It is also likely thatthe £101,000 that has beeninvested will meet Joyce'swish to leave her family aninheritance.Important Notes
Past performance cannot be seen as a guide to the future.The value of investments can fall as well as rise and you may get back less than was invested, particularly on withdrawal in the early years. Our case studies have been written to illustrate various aspects of care fees planning. Although they are based on real clients the names and some of the de- tails have been changed.
Help, Information and Advice logon to carefeesadvice.com
‘This is a subject tokeep your eye on!’
es- pecially if you are an employer
The UK is introducing a newpension called The NationalEmployment Savings Trust, orNEST.The National Employment Sav-ings Trust is a scheme that isaimed at low income workerswithout adequate retirementprovision. It is being rolled outby the Personal Accounts De-livery Authority, and should bein place by 2012.
The schemewill be run by employers.
Employers will be able to setup their own qualifyingscheme, or make sure theirexisting schemes measure upto the required standard, but
in case they don’t have or want
their own scheme the Govern-ment have put in place a kindof default scheme that theycan use. That default schemewas intended to be called theNational Pension SavingsScheme (or NPSS) when itwas first proposed, but thatname got changed to PersonalAccounts (or PA) instead.
What’s just been announced
is that the name Personal
Accounts hasn’t made the
course and is being replacedwith a newer name; that newname is the National Employ-ment Savings Trust (or NEST for short).This retirement plan is beingintroduced because the Brit-ish Isles is facing a crisis inits pension planning. Over tenmillion people either have nopension, or an inadequatepension. And the nationalstate pension*is not going tohave enough money to paypensions in the future. Thisis because people are livinglonger than ever before andthere are not enough work-ers to support the pensionsof the elderly: governmentfigures show that averagelife expectancy in the UKrose by five years for menand four years for womenbetween 1980 and 2000.*
A politically contentiousstatement
—’all state pensions
are being paid from current
taxation’ argues Graham.
information isavailable fromtheGovernmentregarding
‘NEST’ we will