A significant number of adults living in the UK are confused or concerned about paying for later life care, a major study has revealed.
The finding forms part of new research, entitled Solving the social care funding crisis: perspectives on the contribution of property wealth.
Published by the Equity Release Council, the report argues that adult social care is now “the UK’s most pressing domestic issue”, with costs rising each and every year.
For example, the total expenditure on adult social care by local authorities in 2018/19 jumped to a record £22.2 billion, up £800 million compared to the previous year.
The cost of care homes has also risen, with the average residential home now costing between £27,000 and £39,000 annually, or between £35,000 and £55,000 if nursing is required.
And in response to these demands, more adults than ever are now considering using their property to fund their needs in later life; one in two (51 per cent) homeowners aged 45 and oversee money invested in property as part of their later life plans, while over a third (37 per cent) of people aged 65 and over say the same.
But with two in three (67 per cent) adults “determined to stay living in their homes” if they need care in the future, the report suggests that there will be a significant gap in how people expect to pay for care and what funds are actually required.
In England, those with more than £23,250 in savings and assets – including property – are expected to meet the costs of care in full.
Commenting on the report, David Burrowes, chair of the Equity Release Council, said: “The social care sector is a highly complex area and a source of major tension for individuals and families across the generations, compounded by local and national funding challenges.
“Yet almost half of the population are united in feeling that social care should be funded for everyone, up to a certain point, with the option to top this up with your own finances.
“The equity release sector has an important role to play in supporting a sustainable solution and help more people achieve their wishes to be cared for in their own homes.”
Damian Green, chair of the all-party parliamentary group on adult social care and longevity, added: “One of the quietest and biggest successes of our political system has been the cross-party support of the auto-enrolment pensions policy.
“Millions of people will have a more comfortable retirement as a result, and we urgently need to reflect this in care funding too by normalising saving for care costs very early on in life.”
Click here to access the Equity Release Council report.
For help and advice with related matters, please get in touch with our expert later life planning team today.