Saturday, September 24, 2022
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Third of over-60s don’t count on to pay for care

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 liked one.

Over 1 / 4 (27%) of these surveyed by Canada Life mentioned they have no idea how they are going to pay for care.

One in 5 (18%) mentioned they haven’t deliberate that far forward but.

The typical value 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 dwelling (9%), or utilizing an inheritance (5%).

Alice Watson, head of promoting insurance coverage at Canada Life, mentioned: “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 value and find out how to plan for protecting any care wants in later life. For instance, the lifetime cap of £86,000, doesn’t embody all day by day residing prices, and could possibly be deceptive for individuals who suppose it contains all prices. It is possible, due to this fact, that many people will nonetheless have to 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 for having to pay for care is now a vital a part of retirement planning. Advisers will be capable of assist clients navigate the assorted choices accessible, 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 Could.



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