Almost nine in ten British families (89%) are not prepared to financially support their parents in old age according to new research from Engage Mutual Assurance.
With around 850,000 three-generation households in the UK, and estimates suggesting there will be over 15 million over-65’s in the UK within the next 70 years, the problem of long term care for the elderly will not go away.
Families are unprepared for the basic costs of caring for elderly relatives. The sad fact is that the vast majority does not have money to spare to pay out, even if they wanted to.
In some countries, elderly relatives would live with, and be cared for by, their families. The survey suggests about one in five would do this here. In the survey, four out of ten people assumed that the state would provide long term care for their elderly relatives. The number of people needing care means that every year, local authorities struggle to care for those most in need.
The state just does not have the finance or willingness to pay for care for those who need it in their later years. The provision of care for the elderly is now subject to means testing, which takes into consideration the value of the person’s assets. Quite simply, if they own a house or have any real savings, they will be expected to pay for the care provided.
One in four individuals over 65 will require some form of long term care during their lifetime. Few have considered or arranged finances to pay for this. One key problem is that people do not want to spend what can be substantial amounts over the years, and find they live to a ripe old age able to look after themselves.
Recently, Saga launched a free specialist advice service to help families navigate the complicated legal and financial minefield of long-term care. Saga’s telephone-based service has a team of specialist advisers available to answer questions and provide guidance about the system in England, Wales Scotland and Northern Ireland, as well as provide practical solutions to the problem of how to pay for care.
Andrew Goodsell, chief executive, Saga, comments: There is no ‘one size fits all’ solution. The issue of funding care for the elderly is a major concern, with a large proportion of people saying they will find it a struggle to fund any long term care that may be required. Many individuals do not know that there are solutions that exist.
Free copies of the guide ‘Making Sense of Care in Later Life’, are available by calling Saga on 0800 056 8152.
Long term care insurance was once seen as the main solution. Lots of insurers launched products. Some were so complex that even professional advisors were confused. The consumer reaction was confusion and indifference. Many insurers pulled out of the market.
There are still a few insurers offering long term care insurance. Others are believed to be developing new products.
Later this year we will be expanding the long term care insurance section on the Private Healthcare UK site.
