Meet Jim, an 85-year-old widower seeking companionship by moving into a one-bedroom apartment at Birchgrove. Drawn particularly to the social aspects of community living, Jim intends to join the meal plan for daily dining at the restaurant, recognising his limited cooking skills.
With an annual pension of £27,100, Jim faces a financial shortfall. While selling his £535,000 family home could cover his costs until he is 98, Jim's family longevity (his father lived to 103) prompted him to seek a more secure solution.
Jim's financial strategy involves purchasing a £350,000 annuity from his house sale, which guarantees him an annual income of £44,296 to cover his living expenses. He wisely allocates the remaining funds, investing £85,000 as a personal contingency fund and gifting £50,000 to each of his two sons.
Note: Annuity returns differ considerably depending on individual circumstances, such as age and health. Obtaining professional financial advice is crucial to comprehend how annuities may fit your situation.
We hope you have found this example useful in helping you to consider the various funding options available. We recommend that you meet with an independent financial advisor to discuss your specific circumstances.
You will have access to the Birchgrove Moveasy service on payment of the one-off joining fee. The Moveasy service is administered by hand-picked partners on behalf of Birchgrove and provides a tailored service to your individual needs, including access to a financial planner.
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