Care in Old Age - Income Savings

Pensions Quote Line

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Care in old age - Income Savings

The rules for assessing your income and savings are set nationally. Local authorities have some limited discretion, but broadly speaking the same rules apply wherever you live. In working out whether or not you have enough income to pay for long-term care yourself, all your income will be taken into account, including pensions and any state benefits, but not the actual income you get from your savings.

If someone else is dependent on your income, the assessment will allow enough to cover that person's reasonable living costs. There is an exception to this approach: if you get a pension from a former employer's occupational scheme, half of it will be disregarded as belonging to your husband or wife provided you normally share your pension with them.

If your capital and savings come to no more than £10,000, they are ignored altogether. If they come to more than £16,000, you will get no financial help at all, until your savings have been run down below that limit. In between these two limits, you are assumed to receive £1 a week of income from each £250 (or part) of your capital. This is added to your other income to determine whether you can afford to contribute something towards the fees.

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