The real cost of later life care and how to plan for it
Later life care is something many of us know we should think about, yet few truly plan for. With care costs often higher than expected and confidence low, understanding the real figures and starting early could make a meaningful difference to future choices and family peace of mind.
Later life care refers to the support people may need if age, illness or reduced mobility affects their ability to live independently, from help at home with day-to-day tasks through to full-time residential or nursing care.
It is one of the largest and most uncertain costs many people will ever face. Yet it remains one of the least planned for. While most of us expect to budget for retirement, far fewer take time to think about what happens if our health changes and care becomes necessary.
Recent Lloyds Wealth research highlights just how wide this gap has become. Only 19% of people say they have given serious thought to needing care later in life, while over 40% admit they have given it little or no thought at all. Despite widespread awareness that care may be required, planning often gets pushed aside.
0% say they have given serious thought to needing care in later life.
0% admit they have given little or no thought at all.
0% are not confident that they could afford long term care.
The perception gap around the cost of care
One of the clearest findings from our research is how misunderstood the cost of care really is. Over a third (37%) of UK adults surveyed believe residential care costs less than £1,000 per week. In reality, average costs are closer to £1,300 per week, and can be significantly higher depending on location and level of support required.
| Residential care | Nursing Care | Residential dementia care | Dementia nursing care | |
|---|---|---|---|---|
UK average fee | £1,298 | £1,535 | £1,343 | £1,564 |
Source: carehome.co.uk, 09/09/2025
At £1,300 per week, this could amount to over £67,000 a year and potentially run for several years.
This difference between perception and reality matters. Underestimating the cost can lead to a false sense of security and delay action. When care needs arise unexpectedly, families can be forced into difficult decisions at short notice, sometimes limiting choice over care options, location, or how costs are funded.
The key difference is control. Planning early gives you more options over how care is delivered, how it is funded, and how it fits within your wider financial plans.
Many clients are genuinely surprised when they see the real cost of later life care set out clearly. There’s often an assumption that it will either be manageable or dealt with somehow when the time comes. But once we look at realistic costs and model different scenarios, it becomes clear that planning ahead can make a real difference. It’s not about predicting the future perfectly. It’s about understanding your options early so you can protect your lifestyle, reduce pressure on family, and keep as much control as possible over the choices you may need to make later on.
Vanessa Hubbard, Personal Wealth Adviser
It is perhaps no surprise that confidence is low. More than half (56%) of those surveyed say they are not confident they could afford long-term care, while only 21% show any level of confidence at all. For many people, the concern is not just about affordability, but the potential impact on their family or lifestyle.
Why people avoid planning, even when they know it matters
The research shows that avoidance is rarely about indifference. People understand the importance of planning, but still struggle to take action. Nearly a third (32%) say they are putting off planning, and 14% actively avoid the topic because they find it upsetting.
Money worries are the biggest barrier. Almost 40% cite cost and financial uncertainty as their main challenge, ahead of the emotional discomfort of thinking about ageing itself. Others worry about becoming a burden on loved ones or that discussing care makes later life feel uncomfortably real.
These reactions are very human. Planning for care means acknowledging future vulnerability, uncertainty and loss of independence. It is far easier to focus on immediate priorities, but delay often reduces future choice.
A widespread issue, but limited preparation
People do recognise that care is not a niche issue. Around 43% believe at least one in four people will need care at some point in their lives, while more than a quarter (27%) think the figure could be as high as one in two. Despite this, nearly a quarter (24%) have taken no steps at all to prepare for care costs.
Where planning has started, it is often informal or fragmented. Some have considered downsizing or using housing wealth. Others have set aside savings earmarked for care. But only 18% have fully incorporated later life care into a retirement plan.
Taken in isolation, these early steps can help but without a joined-up plan, it can be difficult to understand whether they are enough.
Care costs do not sit in isolation. They interact with income needs, tax planning, state support and family priorities over time. Without a clear view, important gaps can remain hidden until decisions become more urgent.
Conversations that are not happening often enough
Most people see clear benefits in talking about care. Over half (51%) say it would reduce stress for loved ones, while almost half (47%) believe it would create more time to plan financially.
Many want their wishes to be understood, yet these conversations still do not happen often enough.
For some families, the topic only arises in a crisis, when choices are limited and emotions are running high. Starting the conversation earlier, even in a simple, informal way, can help ensure decisions reflect personal values and avoid misunderstandings later on.
How financial planning can help
Our research shows the appetite for advice is strong. Many people want practical tools such as cash flow modelling and professional input, alongside support in facilitating family discussions.
This is where financial planning could make a meaningful difference, helping to turn uncertainty into a clearer, more structured plan.
A well-structured approach could help model different care scenarios, explore how costs might be met, and assess the impact on long term financial stability. It can also help identify gaps early, understand what flexibility exists, and reduce uncertainty over time.
Crucially, care planning does not have to mean making irreversible decisions today. It is about understanding potential outcomes and putting frameworks in place that can adapt as circumstances change.
Taking the first step
For many people, getting started can be simpler than expected. Early steps might include:
- Understanding the potential cost of care in your area
- Reviewing how care needs could fit into your wider financial plan
- Starting a conversation with family about preferences and priorities
Later life care may not be an easy topic, but avoiding it rarely makes it easier. The real cost is not just financial. Lack of preparation may increase stress, reduce choice and place avoidable pressure on families.
Starting with a conversation can be enough to build momentum. Whether that means reviewing assumptions about care costs, exploring your options, or integrating care planning into your broader financial plan, small steps taken early can make a significant difference later on.
Understanding the reality of later life care is the first step. Planning for it is what turns awareness into readiness.
Source: Attitudes towards planning for later life care research, Lloyds Wealth, May 2026
Important information
This article is for information purposes only. It is not intended as financial advice.
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.
