You are here: Home - Retirement - Retirement planning -

Nearly half of adults would save into a fund for later life care

Written by: Emma Lunn
Five in 10 (48 per cent) people would be happy save into a fund for care bills – if unused cash could be left to family when they die.

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.”



There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Last chance: The investment firms paying up to £1,200 to new customers

A host of investment platforms are offering bonuses to new and existing customers of up to £1,200 cashback. Bu...
Last chance: The investment firms paying up to £1,200 to new customers

New easy access best buy saver pays market-leading 2.85% 

Coventry Building Society has jumped to the top of the easy access savings accounts with a rate of 2.85%. Howe...
New easy access best buy saver pays market-leading 2.85% 

How to get 5% interest without tying up your savings for years

You don't have to lock your money away to get an above-average return on your savings.
How to get 5% interest without tying up your savings for years

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week