Third of over-60s do not expect to pay for care

Two in five of the 2,000 over 60s surveyed never expect to pay for the care of a loved one.

Over a quarter (27%) of those surveyed by Canada Life said they do not know how they will pay for care.

One in five (18%) said they have not planned that far ahead yet.

The average cost for care has been estimated by charity Age UK at £600-800 per week.

A quarter (27%) of the over 60s expected to be able to meet these costs using their state pension, followed by another quarter who expected to used cash savings. Only 18% planned to fund care costs using a private pension.

Other ways the over-60s surveyed planned to pay for care included selling assets (14%), money from the government (13%), releasing equity from their home (9%), or using an inheritance (5%).

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Alice Watson, head of marketing insurance at Canada Life, said: “It’s clear there is a lack of understanding and awareness over who is expected to pay for care, just how much it could cost and how to plan for covering any care needs in later life. For example, the lifetime cap of £86,000, doesn’t include all daily living costs, and could be misleading for those who think it includes all costs. It’s likely, therefore, that many individuals will still need to contribute above and beyond the cap.

“This is where advisers have a crucial role to play in helping those in and approaching retirement to plan ahead. The possibility of having to pay for care is now a crucial part of retirement planning. Advisers will be able to help customers navigate the various options available, whether that be using their pension, their property wealth, or a combination of the two, to allow them to plan ahead with certainty.”

Opinium surveyed 2,000 UK adults over the age of 60 on behalf of Canada Life between 20 and 24 May.

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