With over a million over-60s reconsidering their later-life care plans due to Covid-19, Canada Life today discloses that 55 percent still have not made a decision exactly how they will be able to fund it.
Alice Watson, Head of Marketing, Insurance, Canada Life, says: “With people living longer lives and retirement now lasting up to several decades, the reality is that the majority of us will have to pay for later-life care at some stage – whether that be for ourselves or loved ones. This pandemic has changed the way we’re thinking about our futures and how we want to spend them, and ultimately, it’s the industry’s responsibility to ensure advisers have the tools to engage with their clients effectively, offering them the most suitable solutions. It’s about getting people to think about their wants and needs in the different stages of retirement and kick starting these conversations early on – no matter how difficult they might be – and this is where advisers have a significant role to play.
“As an industry, it’s important we highlight how equity release can be used to meet the needs of an ageing population, by allowing people to age in their homes, while accessing cash to fund residential care solutions for themselves or family members. There are a growing number of flexible solutions available to help customers who are looking to unlock equity from their homes and advisers are well placed to help them find the best suited product for their unique circumstances.”
Regardless of the expanding need for treatment in later-life and also the average expense estimated at £600-£800 each week, over half (55 percent) still have not thought about or do not understand how they will fund it. For those who have considered it, a 5th (21 per cent) anticipate to utilise their state pension plan of just £175.20 weekly, 15 per cent anticipate the Government would pay for it, as well as an additional 15 per cent expecting to utilise their money savings.
Simply 5 per cent of over-60s strategy to utilise equity release to cover the expense of treatment. However with residential wealth in Great Britain estimated to be worth over £5 trillion, equity release could allow those in and also approaching retired life to unlock the wealth kept in their homes to assist with treatment prices; generally people are raising £102,443 as a lump sum. Nevertheless, the research study reveals that there is still an expertise gap when it pertains to later-life lending products, with 8 per cent of over-60s unclear of what equity release is and exactly how it can be made use of to fulfill their overall needs.
The research study determined an increasing hesitation amongst over-60s, to go into care residences – possibly being driven by problems from their kids. Nearly a fifth (19 percent) of those that were formerly open up to care homes as an option for their member of the family before the crisis hit, currently wouldn’t consider it. Rather, they are aiming to either move right into assisted living (19 percent), or smaller sized and also a lot more workable residential (19 per cent). Relocating with member of the family was likewise a preferred choice, with almost one in 10 (9 per cent) aiming to relocate into an extra space, and also 6 percent seeking to relocate into a granny annex.