Mel Kenny is a chartered financial planner and a regional coordinator with The Society of Later Life Advisers (SOLLA). He discusses the financial considerations for the elderly and their families. He emphasises the importance of soft skills in financial advice, such as listening and providing reassurance. Key topics include annuities, equity release, and trusts, which can help manage care costs. Mel also stresses the importance of comprehensive financial advice that considers both financial stability and emotional well-being.
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Funding Care - taking advice to make the best decisions
Age & Stage Podcast – episode 16 – Financial Planner and Society of Later Life Adviser Mel Kenny talks about funding care.
This episode explores how to plan financially for later life, particularly around funding care. Mel Kenny, a chartered financial planner and member of the Society of Later Life Advisers (SOLLA), shares essential advice for older people and their families.
Understanding the Emotional Context
Mel emphasises the importance of emotional awareness in financial planning. Many older clients face major life changes—bereavement, illness, or managing finances for the first time. Advisors must listen carefully and provide reassurance, not just financial expertise.
Balancing Spending, Saving & Gifting
A key dilemma for many is how to balance enjoying life, helping children financially, and preparing for care costs. Mel recommends cash flow forecasting to assess whether parents can afford to spend or gift money while still covering long-term care.
Funding Care: Options & Considerations
Annuities: An Immediate Needs Annuity can provide guaranteed lifelong income to cover care home shortfalls, offering peace of mind that costs won’t spiral or lead to reliance on local authority care.
Equity Release & Lifetime Mortgages: These allow older homeowners to access money from their property without selling. Often used to top up care costs, improve living conditions, or maintain independence. However, they should be a last resort after exploring all other funding options.
Home Reversion Plans: These involve selling a share of your property for cash and are only suitable in specific cases, often when large sums are needed and the person is in poor health.
Avoiding Pitfalls
Deliberate Deprivation: Gifting assets to avoid care costs can lead to local authorities treating you as if you still own them.
Protective Trusts: Often expensive and ineffective in avoiding care cost assessments. Always seek qualified legal and financial advice.
NHS Continuing Healthcare
If care needs are complex or unstable, you may be eligible for NHS funding. However, securing this is difficult and requires persistence.
Getting Advice
Later life financial planning is nuanced. Mel urges people to speak to a SOLLA-accredited advisor and involve trusted friends or professionals before making big financial decisions.
For more information, visit societyoflaterlifeadvisers.co.uk or agespace.org.
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