Do care homes take your private pension?

The Role of Private Pensions in Care Home Fees

Private pensions play a significant role in the financial assessment process when an individual enters a care home.

How Pensions Are Considered:

Private pensions are considered assets when assessing an individual's ability to pay for care home fees. The total value of your private pension, along with other assets like savings, investments, and property, is taken into account during the financial assessment, which is conducted by your local authority or social services.

The financial assessment, is a critical step in determining whether an individual qualifies for financial support from the local authority to cover care home fees. The assessment considers both income and assets. 

Self-Funding:

If your private pension and other assets exceed the threshold, you may be categorized as a self-funder, meaning you are responsible for covering the full cost of your care home fees. I

Pension Disregard for Property:

It's important to note that the value of your home is not typically taken into account in the means test if certain conditions are met. 

Care homes do not "take" your private pension, but they are considered as part of your overall financial situation when assessing your ability to cover care home fees.