Five helpful steps towards care planning

Recent Lloyds Wealth research found that while most people are at least aware of the issue, many have yet to take meaningful action. 

While a majority of our respondents had given some thought to needing paid-for care in later life, only 19% said they had thought about it “a great deal”.

At the same time, two-thirds (66%) of respondents said they were either “not very confident or not confident at all” that they would be able to afford long-term care without affecting their lifestyle or putting pressure on family finances.

It’s also not simply about money. Thinking about later life care can feel emotionally uncomfortable – something to park until some unspecified ‘other time’. 

The answer often begins by asking better questions earlier. Here are five practical steps that could help make care planning feel more manageable.

Before focusing on financial solutions, think about preferences. What would later life care ideally look like?

For some people, remaining at home for as long as possible is the priority, with care brought in when needed. Others may prefer to move somewhere smaller, closer to family, or into a retirement or care community designed to offer more support.

Our research suggests many people see the value of these conversations. More than half (51%) said discussing later life care with family would reduce future stress and uncertainty, while 50% said it would help everyone feel more prepared.

Interestingly, Millennials (those aged between 30 and 45) were the most comfortable discussing future plans (45%) and were also the generation most likely to have taken practical actions such as setting aside savings or researching funding options.

In contrast, those in Gen X (those aged between 46 and 61) were the ones most likely to delay, with over four in ten admitting that they know they should plan but instead keep putting it off.

Once preferences are clearer, the next step is understanding what care could realistically cost.

Later life care can vary significantly depending on the type of support needed, where you live, and how long care is required e.g. occasional support at home through to full-time residential or nursing care.

Many still underestimate the scale of the potential costs of care. Despite current estimates suggesting average self-funded residential care costs can exceed £1,300 per week, almost four in ten believed residential care costs £1,000 per week or less. 

This gap appears more pronounced among younger generations. Millennials were less accurate on estimating care costs than the more realistic expectations of Baby Boomers (those aged between 62 and 80) who may have lived exposure to the experiences of peers or aged parents.

So, it’s worth understanding the range of outcomes and how they might fit into your wider financial planning.

Planning for care works best when considered as part of a broader retirement strategy, alongside existing income sources such as pensions, investments, savings or property wealth.

Could your current retirement income continue to support everyday living costs while also covering care expenses? If not, which assets might you rely on?

Drawing more heavily on pensions or investment portfolios may reduce long-term income sustainability. Meanwhile, selling or releasing equity from property could affect inheritance intentions.

Confidence in affording care was far lowest among Gen X respondents, with around 51% saying they were not confident at all in their ability to fund long-term care, a full 19% more than Baby Boomers and 25% more than Millennials.

This makes scenario planning especially valuable. Cash flow modelling could help stress-test a retirement plan against different later life scenarios, including the possibility of needing care, allowing people to identify potential gaps earlier.

In fact, almost 42% of all respondents said clearer future income and cost projections would make planning easier.

Given that no one has the luxury of a crystal ball, resilience and flexibility are often more valuable than rigid plans.

This may involve holding accessible cash reserves, maintaining a financial buffer for unexpected costs, or reviewing whether your investment strategy still aligns with your future needs.

Among those already acting, 30% had considered downsizing while 22% had set aside dedicated savings to help cover care costs.

Despite their relative youth, Millennials were the most proactive (30%), particularly around discussing care concerns with family, reducing stress and financial burdens – perhaps seeing the impact of not doing this first-hand in their own families.

Financial circumstances can change of course, and family dynamics can shift too. A plan that feels appropriate today may need updating in five or ten years’ time.

While Gen X tends to be the least engaged, Millennials are more likely to actively seek out professional guidance and expert support. Baby Boomers, on the other hand, are keener to discuss matters “in-house” with their (younger) family.

By reviewing care planning regularly and openly, all parties can remain aligned with both financial reality and personal priorities.

While these conversations are not always easy, they can help reduce uncertainty, avoid rushed decisions, and ensure important preferences are understood ahead of time.

Speaking to a financial adviser can help you explore different outcomes to ensure your later life care planning is on track.

You can book a free, no obligation call with one of our team today. There are no hidden fees or charges, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan.

Source: Attitudes towards planning for later life care research, Lloyds Wealth, May 2026, based on 949 respondents.

This article is for information purposes only. It is not intended as financial advice.

The retirement benefits you receive from your pension plan depend on a number of factors including the value of your plan when you decide to take your benefits which isn't guaranteed and can do down as well as up. The benefits of your plan could fall below the amount(s) paid in.

Lloyds Wealth does not provide equity release product or equity release advice.
This article refers to third party sources which we believe to be true and accurate.

Any views expressed are our in-house views at the time of publishing. This content may not be used, copied, quoted, circulated or otherwise disclosed (in whole or in part) without our prior written consent.