Making the decision to move into a residential care home is deeply personal and can feel overwhelming. With many emotional and practical arrangements to be made, one of the most important aspects of this next step is understanding how your finances, and particularly your private pension, may be affected.
Your private pension will continue as normal should you move into a care home. However, it will be considered alongside your income, savings and assets if your local council undertakes a financial assessment for care fees.
Your local council may be able to offer partial or full care home funding depending on where your total savings and assets fall on the scale of thresholds.
At Sanders Senior Living, our weekly fees depend on an individual’s needs following a comprehensive pre-admission assessment. We offer residential care for people with varying care needs.
Learn more about the outstanding types of personalised care we offer.
Understanding the Thresholds of Council Funded Support
When a local council conducts a financial assessment for care home funding, they evaluate the total of your private pension, income, savings and assets to determine if it is above or below the thresholds to qualify for care home funding.
Anyone above the top threshold will be considered a self-funder and will be responsible to pay for their own care.
If your total savings and assets are between thresholds, you will be entitled to partial financial support from your local authority.
Anyone below the lower threshold will qualify for maximum care home funding from their local council. The thresholds vary across England, Northern Ireland, Scotland and Wales.
Thresholds for residential care funding (2025-26):
| Country | Lower Threshold | Upper Threshold |
| England | £14,250 | £23,250 |
| Northern Ireland | £14,250 | £23,250 |
| Scotland | £21,500 | £35,000 |
| Wales | N/A | £50,000 |
What if I’m Classified as a Self-Funder?
If your total capital is above the upper threshold, you will need to pay for the full cost of your care yourself. You are not required to undertake a financial assessment if you do not wish to, and you do not need to involve the council in arranging your care.
However, if you are uncertain what care you or a loved one needs, you can ask your local council to conduct a free needs assessment. This would provide detail such as whether at home support from a carer or a residential care setting is required, and precisely what they should support you with.
What Happens to Your Private Pension if You Move into a Care Home Before Your Partner?
If you have a private pension when you move into a care home, half of this can be passed over to your spouse or civil partner. This will then be excluded from any means testing for council funded support.
If your partner remains living in your jointly owned property, it will also not be included in the financial assessment to determine whether you pay for care home fees.
Seeking Advice and Guidance Before Moving into a Care Home
If you think you may have lost track of a pension over the years, you can use a pension tracing service to locate it and regain control of missing savings.
Consulting an independent financial adviser who specialises in later life finances, such as a fully listed member of the Society of Later Life Advisers (SOLLA), will help you explore your options, such as long-term care insurance and safeguarding your assets.
A good financial adviser will help you make the right plan for you and your personal circumstances.
Ready to Find a Luxury Care Home Near You?
Choosing the right luxury care home for you shouldn’t mean sacrificing the comfort, amenities and lifestyle you deserve. At Sanders Senior Living we provide high quality residential and dementia care in state-of-the-art facilities with an aim to ensure each day is enjoyable and memorable. Connecting luxury and comfort with quality care is at the heart of everything we do, creating environments that will exceed your expectations. Our professional team delivers exceptional home-from-home living, wellbeing-focused care, and enriching events to encourage community and companionship.
Experience a distinctly different care home.
With a collection of eight lavish homes across the country from Leicester to Essex, our residents receive 24-hour professional care in the most beautifully appointed surroundings.
Get in touch with our highly trained team to find a Sanders Senior Living Care Home near you.
