We were all very proud of her longevity and the wonderful life she lived. But her story is also interesting in financial planning terms because her six years in full-time residential care were significantly longer than we expected - and significantly longer than the average stay. Fortunately, the costs of the home were just about covered by her income, with family supplementing every now and again. But many people won't be so financially fortunate.
Long-term care is the one big bill that many fail to consider or provide for. Jane, the subject of this week's Portfolio Clinic, is planning for her retirement in four years' time and has been advised to model her cash flow into retirement, factoring in inflation and the potential cost of long-term care.