Caring for the elderly
Important information - the value of investments can go down as well as up, so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice.
Sarah Davies, Senior Marketing Manager
Know what you're up against
On Census Day 2021 (21 March) there were approximately 4.7million unpaid carers in England and 310,000 unpaid carers in Wales1.
Women are more likely to become carers and provide more hours of unpaid care compared to their male counterparts. And more women than men provide high intensity care at ages when they would expect to be in paid work. This inevitably impacts women’s financial stability, and they may well work fewer hours and have less in their pension.
The ongoing cost-of-living crisis is also putting pressure on carers’ finances. According to Carers UK, a quarter of carers are cutting back on essentials like food or heating and 63% are extremely worried about managing their monthly costs2.
And black, Asian and ethnic minority carers are more likely to be struggling financially3. Over half (58%) of unpaid carers from these groups were worried about their finances, compared to 37% of white carers.
Although carers are eligible for an allowance, it’s only £81.90 per week (2024/25) for a minimum of 35 hours. It’s one of the lowest benefits of its kind in the UK - so carers will have to balance caring and working to afford day to day costs. That’s a lot of plates to spin.
Sources:
1. ONS: Unpaid care by age, sex and deprivation, England and Wales: Census 2021.
2. Carers UK, State of Caring 2022
3. Carers UK, The Experiences of Black, Asian and minority ethnic carers during the COVID-19 pandemic and beyond, 2022
Take control
Caring for someone is hard work. As a woman, it’s important to prioritise your financial health. One of the most important things to prioritise when looking after your finances is budgeting.
- Plan your finances - draw up a budget and keep on top of it. Track your income and expenses at least once a week.
- Do a review of what your money is currently being spent on. Gather up all the household bills, bank statements and receipts. You can then sort these into either essential spending or extra spending.
- Ensure you have some money set aside for emergencies. Once you've built this rainy-day pot up you can use a Stocks and Shares ISA to reach your future financial goals.
What you could do next
Start a tax efficient savings account
Invest in a Stocks and Shares ISA and pay no income tax or capital gains tax on your returns.
Explore regular saving
Making regular monthly contributions to your investments as part of a savings plan could help them grow into a sizeable sum over the long term.
Set your retirement goals
Get an indication of the annual income you need in retirement to help you work out how much to save.
