As seen in the figures quoted above, domiciliary care is not a cheap option so even low-level care needs can make a huge difference to finances. For example, Hanifan says the cost of home adaptations and assistive devices to make life easier should always be considered - although all these come with a price.
Hanifan adds: "A good later life adviser will work with their clients to look at the relevant costs in their area as these vary geographically. They will also ensure that any potential benefits which may be available are taken into consideration."
And, while we are living longer, we are also likely to be spending more time in a position where we need later-life care of some form, which means these costs need to be covered for longer than we might want or expect.
Are these going to be coming out of the 'spending' pot or what was originally earmarked as an inheritance? How are these discussions likely to pan out with the family?
Having those frank discussions
Part of the problem, according to Cavendish Ware's McLoughlin, is that people do not always want to think about death. He explains: "Even proficient cash flow modelling cannot solve the ultimate question that clearly nobody really wants to ask – in other words, 'When is mortality day?'.
"The key to the balance is an honest and frank discussion about spending patterns as people hit retirement.
"On one hand there is the proverbial bucket list and every day is a Saturday. Paradoxically, one's spending habits will slowly decrease and a recent piece of US research estimated this to be approx 2 per cent each year in retirement."
This winds back to his earlier statement about cash flow modelling. While it cannot predict or solve the date of death, using known averages from the Office for National Statistics, advisers can provide a plan that is as accurate as it is possible to be.
According to the ONS, people aged 65 years in the UK in 2018 can expect to live, on average, a further 19.9 years for males and 22 years for females. This is projected to rise to 22.2 years for males and 24.2 years for females in 2043.
A typical 18-year-old female now can expect to live well into her 90s, the ONS data suggests. This presents challenges for stretching that pension pot as far as possible, without severely restricting the pensioner's way of life or limiting any inheritance they want to leave.
"Again, efficient cash flow modelling and prudent tax advice will go a long way to solving a very challenging conundrum," he says.
