While Aviva welcomes this paper that highlights the importance of long term care funding and the pressures facing the care system, our experience is that it is a challenge to persuade people to think about the possibility of needing care.
As a result we feel it could be extremely difficult to encourage people to pre-fund for long term care and would caution the Government against over reliance on this form of funding.
Many people are facing significant financial pressures and are already finding that saving for retirement can be challenging, particularly when they have more immediate requirements for their disposable income. By its nature, long term care is even less of a priority for many, as it is an issue people may not have to consider for several decades.
It is important that we look to find a range of flexible solutions to support the future long term care needs of our customers. This may mean changes to the ways in which people's assets - whether pensions, savings, property or a combination of these - are used to fund long term care. This could in turn help provide more flexible solutions to give people the best value for their own situations.