Less than one in 10 people in the UK view planning ahead for possible future social care costs as a financial priority, a new report has found.
Publishing the findings from its global retirement study, financial services company Aegon said just 7% of UK residents view putting money away for social care as a priority, with just 1% viewing it as their single greatest financial priority.
The study also found that 64% of people in the UK are not factoring healthcare into their retirement savings.
This is despite more people citing declining health as their biggest retirement concern (48%) over running out of money (42%).
The research suggests that not prioritising funding for long-term care may be down to the perception that it’s something that the government will pay for when the time comes.
Two in five respondents (38%) said they haven’t factored in care as a future expense because it will be provided by the NHS, while 31% haven’t considered it at all.
Aegon said it is hopeful that the long-delayed plan for social care reform will dispel misconceptions around what the state will provide and clarify to people what they may be expected to contribute personally.
Steven Cameron, Pensions Director at Aegon said: “Compared to other countries, UK citizens benefit greatly from having access to the NHS, but all too often, people wrongly believe that their social care needs in later life will also be taken care of by the state.
“The issue of social care and how to cover personal contribution to costs needs much greater consideration within the overall retirement planning process. When the UK Government does set out its new deal, it will be vital to incentivise people to plan ahead and save for their possible long-term care in older age.”
Aegon’s global study was carried out between January 28 and February 24 2020, and involved 14,400 workers and 1,600 retired people across 15 countries.