Nearly half of adults would save into a fund for later life care
A contingency fund is the most popular option for funding later life care, according to research by AIG Life.
The insurer put forward six suggestions for funding social care, and found that saving into a special fund, which could be left to loved ones, was the most popular option with survey respondents.
The other options were: paying more income tax, paying a social care tax after a certain age, paying more tax on assets or property, increasing the retirement age, and selling property once you reach a certain age.
Selling homes to fund care was the least popular option – just 20 per cent of people said that would be an acceptable way to fund social care, with 52 per cent saying this option was unacceptable.
AIG’s research shows adults accept they will need some form of care in later life – just 11 per cent are confident they will not need any support in old age and on average people expect they will need either care at home or in a care home after reaching the age of 76.
About a third (31 per cent) said the current threshold of £23,250 in savings over which anyone with more has to pay for local authority care is about right, while 42 per cent backed the current system for NHS funding of social care and support.
Alison Esson, propositions manager at AIG Life, said: “People are realistic about the potential need for help in later life and recognise that as they get older, they may need some form of care with the average age for help seen as 76.
“Increasingly people are living longer and more people will see their 100th birthday over the coming decades, which is likely to mean more demand for care, even if it’s a little help each week to look after you in your home.
“People accept that funding for more social care will have to come from somewhere and that they may have to provide the money in some form. However, it is a debate that has a long way to run.”