Despite government warnings that the current elderly care system is unsustainable, 70% of over-55s do not believe that they should pay for care in retirement. Of those who do, they state that just £3610 is a fair cost for a lifetime of care, reveals Aviva.
While the majority of over-55s would prefer not to pay for care, they do concede that it is unlikely that the State will be able to pay for everyone’s care. The most popular funding options were for the better off to contribute to the cost of their own care but for the government to pick up the tab for everyone else (51%) or for those who can afford to, to contribute to the cost of care (36%).
How affordability is determined was a matter for debate with some suggesting it should be based on current assets (16%) and others feeling lifetime income (14%) should be the measure. Irrespective of what system was used, the majority (53%) felt there should be a cap on how much an individual was forced to pay towards their own care.
Under the current system people are expected to finance aspects of their care and the research highlighted a significant lack of preparation. Over half (53%) of over-55s have no plans at all in place to meet these costs and 14% continue to believe that the government will cover all the fees.
Even amongst those who do say they have some plans in place, just 2% have long-term care insurance with others preferring to rely on savings and investments (13%), housing equity (9%), their pension funds (3%) and on family assistance (3%).
The reluctance to pay for care is understandable as each year sees a smaller % of the elderly having to go into care and the length of time now is often only around two years.