ICR263: Underestimating the cost of care (with Faith Archer)

According to some new research, people in the UK are underestimating the cost of elderly care by £7bn every year. That's according to research from Scottish Widows’ independent think tank, the Centre for the Modern Family.

On average, UK adults estimate that residential care would cost £549 a week – when in reality it costs on average £866 for a place in a nursing home – leaving a shortfall of £317 every week.

In this episode, we talk about why people often underestimate the cost of care in later life, the tough conversations you need to have with family members, and where you can go for help and information.

Introducing Faith Archer

Faith is an award-winning money journalist who writes the blog Much More with Less, about moving to the country, living with less and making the most of it.

She was Deputy Personal Finance Editor at The Telegraph and continues to write today for a wide range of publications, including The Sunday Times and Mirror Online.

You can follow Faith on Twitter @MuchMore_Less

Want to join the Informed Choice Radio squad and co-host a future episode? Find out more here.

Personal finance news

- Consumers lodged the most complaints about any UK financial business in the first half of the year against the Bank of Scotland, according to the latest figures from the Financial Ombudsman Service. FOS dealt with 20,541 complaints about the Bank of Scotland, which is part of Lloyds Banking Group.

- One in four UK adults is considering buying an electric car within the next five years, according to new research from Sainsbury’s Bank Loans. The supermarket bank’s latest Car Buying Index, which tracks consumers’ car purchase intentions, reveals that recent Government announcements designed to boost the switch to zero-emission vehicles are convincing large numbers of motorists that their future is electric.

- The UK's factories are experiencing record order books, boosted by the weak pound and stronger eurozone economy. A new survey found firms' expectations for the third quarter showed output rising in 34% of businesses surveyed.

- A new study has revealed that 31% of tenants in rented accommodation cannot imagine ever owning their own home. The research, commissioned by GoCompare Mortgages, also revealed that 21% of renters think that the removal of mortgage interest tax relief on buy-to-let properties, which came into force in April 2017, will reduce the supply of rented properties in their area.

- As Freshers get ready to leave the family nest for university this September, research from American Express has revealed UK parents spend an average of £3,662 during the course of their child’s degree, purchasing everything from bedding and books to groceries and gadgets to ensure their offspring have the best campus experience possible.

Get answers to your personal finance questions

Do you have a personal finance or investing question for Martin?

Email martin@icfp.co.uk or ask on Twitter @martinbamford.

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