MetLife is calling for increased innovation and flexibility
in the use of pension funds to help pay for long-term care.
MetLife believes pension savings can be a valuable source of
funding that could help end means testing.
Peter Carter of MetLife says, "Retirement income planning needs a
radical rethink. The issue of funding long-term care requires new solutions and
accessing pension funds could provide considerable help to people with
reasonable-sized pension savings. Savers could be allowed to access pension
funds when their medical condition means they have to go into residential care.
Deferred annuities held within pension plans would enable savers to plan ahead
for the risk of living longer than expected, and potentially exhausting their
retirement savings. Deferred annuities protect against this risk by
guaranteeing an income at a fixed age while allowing individuals to continue to
draw an income from their existing fund.”
Long term care news: 17 July 2012