Britons are failing to allocate sufficient funds to pay for long-term care
according to new research.
Nearly two million 55 to 75-year-olds who have savings claim to have no intention of setting any money aside to pay for a future nursing home, Fidelity International has revealed.
In addition, the survey showed that, of the 24 per cent of people who do plan to save for long-term care, 37 per cent are setting aside less than £25,000.
This means that they will only have enough to cover one year's care, despite the fact that the average nursing home stay lasts for three years and one in six people rely on a home at some stage.
Simon Fraser, president of institutional business at Fidelity International, said that people needed to start saving on a regular basis to meet the financial requirements of long-term care.
"Longer lives can mean more time in retirement but also more time in poor health – a message that sadly does not seem to be getting through," he commented.
"The average nursing home stay is three years but of the people who will put some of their money aside, just one in five will reserve anywhere near enough to pay for it – and this assumes they haven't run out of money by the time they are unwell."
Mr Fraser recommends that people start saving regularly "and in a wide basket of savings and investments".© Adfero Ltd
Elderly care news : 19/12/2006