Who should pay for care?

A new survey has found that 70% of over-55s do not believe they should have to pay for the cost of care in later life.

The latest Real Retirement Report from Aviva found that whilst most people are worried, concerned or terrified about meeting care costs, very few have made any formal provision.

Of those over-55s who believe they should have to pay for care in retirement, they say that an average of £3,610 is a fair cost for a lifetime of care.

Looking at suggested funding strategies for care in later life, the Real Retirement Report found the most popular option was for the “better off” to contribute to their own cost of care, with the Government paying for everyone else. 51% of respondents felt this was the best option.

Meeting the cost of long term care continues to be a very difficult subject, despite the government initiated review by Andrew Dilnot concluding that social care costs in England should be capped at £35,000.

Under the current rules, those with assets over £23,250 are expected to fully fund the cost of care.

The Local Authority only picks up the tab when assets, including the value of property in some cases, falls below this threshold.

The independent Dilnot report argued for this threshold to rise from £23,250 to £100,000. Doing this would result in fewer people having to fund their own care fees.

Despite these proposals, planning for the cost of care remains a challenging and specialist advice area.

Those needing care should spend some time talking to a suitably qualified and experienced independent financial adviser to ensure they understand the various issues and their options for meeting these costs.

Photo credit: Flickr/Borya