Long-term care needs expected to drive demand for UK advice

Added 10th November 2016

Advisers in the UK are set to be inundated with work planning for long term care needs of savers, a new survey by Just Retirement Partnership suggests.

Long-term care needs expected to drive demand for UK advice

While two thirds of over-45s believe they may be forced to sell their home to pay for care, just 6% have included care costs in their financial planning.

Around 53% of over-45s said they would not rely on state funding if they can find a way to use their own money to pay for their own care such as by selling their own house.

Group communications director at Just Retirement, Stephen Lowe, said that though the 6% that have included care in their financial plans remains “worryingly low” the number is on the rise.

“A number of advisers are starting to show interest and to see if they should serve the care market.

“If people aren’t aware they need to take responsibility for funding their own care they won’t have any compulsion or have that conversation to act.

“If you want to create a market for financing long term care you need to start building demand and raising some awareness,” said Lowe.

In April last year, the UK government introduced the first part of the Care Act, mandating that local authorities providing information and advice on elderly social care.

The second-part of the Act, initially set to come into force this April, involved the ‘Dilnot Cap’ - which will limit care costs at £72,000 ($89,455, €80,888) – has now been delayed until April 2020.

Lowe said that despite these provisions, getting people to take financial advice or guidance among authorities is “completely mixed and failing”.

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About Author

Monira Matin

Senior Reporter

Monira joined International Adviser in March 2016 from Informa Global Markets where she worked as a eurobond reporter for over two years, covering fixed income markets. She has previously held a number of editorial positions covering politics, insurance and technology. Monira has a degree in Journalism and Economics from City University.

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