I am in my early 70s, fit and well, but also thinking of the future. I am single, no children, living in rented accommodation. I don’t own property and have savings of about €500,000.
My income is currently about €32,000 from the contributory OAP and a private pension, which is index linked. It is taxed at 20 per cent. I live comfortably within my income.
If I need to go into a nursing home down the road, I’m assuming I just pay my way and get tax relief – ie Fair Deal won’t apply.
I’m also assuming I won’t live long enough to run out of money – but what happens if I do? Do I then throw myself on the mercy of the State? And is she likely to be merciful!?
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My aged mother’s health is declining quickly. Should we prepare her home for sale?
Are nursing homes generally open to any negotiation in relation to their fees for a cash arrangement?
Ms M.K.
We all worry about finances in our later years when we are no longer working or have dramatically reduced working capacity. And for those of us who are single, the issue of who might take care of us if our health fails can also be a concern.
It make sense then to think ahead to a time when nursing home care might be required.
The relevant figures for your earnings and savings will be those in place at the time you may need such care and are considering whether Fair Deal may be an option.
But on your current figures, Fair Deal would take €25,600 of your income and €37,500 of your savings in the first year – 80 per cent of income and 7.5 per cent of savings.
Clearly the figure falls as your savings diminish. In Year Two, assuming 4 per cent growth in the balance of your savings, the Fair Deal Contribution from your savings would be closer to €36,000.
As you have no home, there is no property-related charge levied.
Given that the cost of private nursing home accommodation in Dublin is about €7,000 a month and closer to €6,000 possibly outside big urban areas, I expect you would be eligible for Fair Deal and that it would be a better option for you financially than paying privately.
There is a fair bit of paperwork involved so it is no harm to get the necessary form if only to find out what information you will need to have to hand should a time come when you need to apply.
You ask whether nursing homes are open to negotiation in relation to fees on a cash basis. Not in my experience, to be honest. What I am seeing is some homes demanding fee premiums over and above Fair Deal rates for private care because, they argue, Fair Deal rates are not sufficient to match the cost of care.
Also, some homes will charge for every little extra; others include things such as social events in their fees, so this is something you might look at.
And if you do not qualify for Fair Deal, what happens if you run out of savings? You can apply for Fair Deal at any time – certainly long before you “run out” of money. So there is financial support available to you when you need it, even if not initially.
State support of nursing home residents is not perfect by any means but no one has any interest in making people destitute.
It would be a good idea as a single person with no family to draw up an enduring power of attorney authorising someone you trust to help you making such decisions if you are less able to do so down the line. Money matters can be overwhelming for people who may already be dealing with some form of dementia, as is all too common as we age.
The main thing here is that, contrary to your view, I think Fair Deal is accessible and appropriate for someone in your position. Should your earnings or savings grow significantly between now and then, that may change but Fair Deal will still become an option for you as your savings diminish.
Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street Dublin 2, or by email to dominic.coyle@irishtimes.com with a contact phone number. This column is a reader service and is not intended to replace professional advice
