Property wealth growing factor in care costs for over-55s
Property wealth is growing in importance for funding care, a report from over-55s specialist adviser Key found.
Around a third of over-55s plan to use their homes for care now compared with just 19 per cent a year ago.
This coincides with a similar downturn in confidence in being able to fund care from savings and investments or pension incomes, partly driven by historic lows in interest rates and continuing stock market volatility.
Just over a third of over-55s believe their savings and investments will help fund care and even fewer think their pension income will suffice.
Key’s study shows over-55s overwhelmingly want to receive care in their own property – with three-quarters planning to either stay in their current home or move to a more manageable property.
A quarter of people either don’t know how they would meet their care costs or wouldn’t be able to meet the costs.
Will Hale, chief executive at Key, said: “When you speak to people, you find that the vast majority are keen to receive care and support in the comfort of their own home but struggle to know how, or how best, they might meet these costs.
“With the recent economic turmoil, confidence in savings and pension income has fallen while more people are looking to the value tied up in bricks and mortar to finance care.
“Getting good advice and understanding what resources you have to draw on is important – and making sure you factor these potential costs into your retirement planning is vital.
“At the same time as councils are under pressure, over-55s are waking up to the reality that they may well need to pay for all or some of their care in later life.
“This has created the perfect storm and it is vital that the government focuses on setting out clear plans for reaching a cross-party consensus on social care, and consider long-term reform and funding of the care system.”