When Frances Jordan was diagnosed with dementia in 2014, her family home was sold. The proceeds, together with her savings and small pension, were used to pay for her care. When she died earlier this year £250,000 had been spent on care fees. Very little was left.
This story, covered in last week’s Sunday Times, may prove somewhat sobering for many of this year’s University graduates. Almost three million of them are now entering the world of work. Those from England are carrying an average student loan of £53,000. Mrs Jordan, though born during the war, had the good fortune to live in years of stability and relative prosperity. Today’s University leavers are facing the uncertainty of employment, the impact of AI and the prospect of 6% interest upon their loan. With the confidence of youth, their desire to succeed seems unshaken but in many cases they must also feel reassured by the possibility of an inheritance from one or both of their grandparents.
I hope they are right. In the past five years care home fees have risen by 28%. They are now averaging £5,200 per month; more if dementia is involved. Overall inflation has been just above 20% but house prices have fallen behind.
The nil rate band for inheritance tax has remained unchanged at £325,000 since 2009. Even before anyone enters a care home, the costs of them living at home are often very high. Adult children are now considering the option of early retirement in order to care for their parents
There have, of course been enough surveys about all this to fill a couple of libraries but I have not yet found anything that has deeply explored the overall social impact of what is happening. An older generation leaving less, a younger generation relying on more and the one in the middle trying to muddle through.
Most campaigners against assisted dying seem fixated on the idea that avaricious children are wanting to coerce their parents into dying early. In my experience of running this website, the opposite is true. Most parents really want to leave an inheritance and are deeply troubled by the knowledge that their wealth is evaporating.
