Ways of making your money last

Pensioners who are considering going into a residential or nursing home can now get independent advice from the Nursing Home Fees Agency, a new specialist advisory organisation, on how to finance it.

The NHFA was set up by the Oxford accountancy firm Spiers Blake. Nicholas Tyler, a partner, has seen a number of examples where elderly people were badly advised.

One client's capital of pounds 500,000 was put into a building society account at an interest rate that was insufficient to meet his care fees. Other clients, he says, have been sold high-risk unit-linked investments without being told that their value can fall.

The NHFA's representatives can give straightforward guidance on social security benefits through the post. For financial advice, they will make personal visits around the country.

'Our advice is free and available to all,' the agency says. The commissions it earns from advising some clients will help to subsidise the cost of helping other old people who may have no capital. Investment recommendations cover building society deposits, National Savings, personal equity plans, unit trusts, investment bonds, annuities and specialised care fee plans.

The agency says it will continue to advise clients once they are in care. Many old people are in particular need of independent advice. On the one hand, they will need to protect their own income flow. On the other hand, they will want to leave as much capital as they can to their family and friends.

Kean Seager of Whitechurch Securities in Bristol, which specialises in this area, says providing guidance on nursing home fees involves knowledge of social security regulations, which is outside the scope of many financial advisers.

He says people should keep enough in a building society to cover fees for two or three years, with the balance in different investments providing returns for future fees.

NHFA, tel 0865 60506; Whitechurch Securities 0272 687277.