Preparing for my Mam's retirement

stainluss

My mam lives in public housing and will be receiving at state pension. She is not married and has few savings. I am her only son. She is now 65.
I am a college graduate and I am earning a reasonable salary in the tech sector. Although I am now becoming financially comfortable I am worrying about what to do as my mam continues to age. I understand that nursing home care costs and arm and a leg. Should I be doing something like paying nursing home insurance now or will she be covered under the Fair Deal? If its the latter, will they be looking to take my assets also or just hers (she won't have any)?

looksee

Fair play to you to be considering this. I suspect she will not be eligible for fair deal as this is designed to avoid selling a property while the owner is alive, if she does not have a property it will not be relevant.

I do not know much about nursing home costs, but https://www.hse.ie/eng/services/list/4/olderpeople/nhss/costs.html may help with some of the information - note that the costs given are not necessarily what the resident will pay, that will depend on their income.

It may well be though that she will not need nursing home care, and this is used less and less as people go into sheltered housing. If she is alone in a council property it may be that the council would be glad to transfer her to sheltered housing to free up housing stock. Have you talked to her about it? If she is well and independent she may not wish to go into a nursing home, and anyway it could be another 15 years or more before it would be necessary. It may not be necessary at all!

You may get information here, but each case is different and you might be better advised to talk it over with her and then make enquiries in the local Social Services office for information.

splinter65

Is your mother in bad health OP ? 65 is very young to be thinking about nursing homes if she is in reasonably good health right now.
She will get a state pension either contributory or non contributory when she is 66.
She needs to apply at least 3 months before her 66 birthday.
The fact that she is in social housing won’t make any difference to her eligibility for the Fair Deal Sceme down the line.
Read this.

http://www.citizensinformation.ie/en/health/health_services/health_services_for_older_people/nursing_homes_support_scheme_1.html

looksee

That's a very good document Splinter, one I had not seen.

Uriel.

Good to see people thinking ahead and try to plan. Fair play.
Your mam will qualify for fair deal no issue unless she's a secret millionaire.

Only assets in her own name or any asset transferred to a third party (including you) in the five years before she avails of fair deal are counted. So ordinarily, your assets don't come into it, unless you received an asset from your mam as highlighted above.

It seems though that there is increased effort to keep people at home for as long as possible so there's increased levels of homecare available (though still not enough). The government have said they are also working on a fair deal type scheme for home care. It's probably a few years away yet and nobody knows the detail of it, but I guess there will be more choice in the years ahead.

lulu1

I Know you are trying to do your best in looking out for your mother but 65 is way to early to be thinking about nursing homes for her. Did you ask her for her opinion and if she would even go into a nursing home

looksee

I have to agree with lulu, while it is a good idea to be thinking ahead, at the same time don't have visions of her going into a nursing home in the immediate future, unless there are some serious issues. For many of us over 70s, nursing homes are not even on the horizon! I am currently building a house and starting a business...

Spanish Eyes

Your mother will be totally eligible for Fair Deal. 80% of her income will be the contribution amount if she has not other assets, so if that is only the State Pension she will be left with a small sum to cover non medical card/comfort items such as hair cuts etc.

Your income (if living with her) is not taken into account AFAIK. That used to be the case in the old days, but not anymore.

Do not worry, all will be well. But unless she is ill and vulnerable at the moment I would park all this concern for now. Good on you for planning ahead though.

Look up the Fair Deal Scheme for starters anyway. I presume mother qualifies for medical card. If not she should with no assets and just the State pension.