More than 70% failing to save for old age

More than 70% of people aged 45 and over are failing to plan for care costs in their retirement, research has found.

The Cost of Tomorrow report by Tilney Group found that two in five people (39%) did not think they would require long term care and one in five (22%) thought the government would cover their care expenses entirely.

Andy Cowan, Head of Financial Planning at Tilney, said: “There is a danger that too many are burying their heads in the sand when it comes to facing the cost of care when they should be getting specialist financial advice to help them understand how they can fund any future care.”

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Recent research has found that residential care homes costs an average of around £30,000 a year for a residential care, with nursing care costing up to £40,000 per year.

There are currently more than 400,000 people aged 65 and over in care homes in the UK.

Tilney found that those yet to retire underestimated the amount they will spend in non-working years by almost £100,000.

Andy added: “By facing up to the realities of the impact of the cost of care during this important age bracket, rather than leaving it too late, pre-retirees can relieve some of the stress and worry through the knowledge that they have a sound financial plan in place to help them fund the lifestyle they want, both now and in the future.

“The next government also needs to tackle the issue head on and hopefully we’ll see the UK’s political parties considering new incentives to encourage earmarked long-term care savings in their upcoming election manifestos.”

 

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