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A 3rd (30%) of over 60s don’t count on to pay for later life care prices, in keeping with a brand new report.
Two in 5 of the two,000 over 60s surveyed by no means count on to pay for the care of a beloved one.
Over 1 / 4 (27%) of these surveyed by Canada Life stated they have no idea how they’ll pay for care.
One in 5 (18%) stated they haven’t deliberate that far forward but.
The typical price for care has been estimated by charity Age UK at £600-800 per week.
1 / 4 (27%) of the over 60s anticipated to have the ability to meet these prices utilizing their state pension, adopted by one other quarter who anticipated to used money financial savings. Solely 18% deliberate to fund care prices utilizing a non-public pension.
Different methods the over-60s surveyed deliberate to pay for care included promoting belongings (14%), cash from the federal government (13%), releasing fairness from their house (9%), or utilizing an inheritance (5%).
Alice Watson, head of promoting insurance coverage at Canada Life, stated: “It’s clear there’s a lack of awareness and consciousness over who is anticipated to pay for care, simply how a lot it might price and the right way to plan for masking any care wants in later life. For instance, the lifetime cap of £86,000, doesn’t embody all day by day dwelling prices, and may very well be deceptive for individuals who assume it contains all prices. It is seemingly, subsequently, that many people will nonetheless must contribute above and past the cap.
“That is the place advisers have a vital function to play in serving to these in and approaching retirement to plan forward. The potential of having to pay for care is now a vital a part of retirement planning. Advisers will be capable of assist prospects navigate the varied choices out there, whether or not that be utilizing their pension, their property wealth, or a mix of the 2, to permit them to plan forward with certainty.”
Opinium surveyed 2,000 UK adults over the age of 60 on behalf of Canada Life between 20 and 24 Might.
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