More than a third of people over 50 may not be able to fund their social care needs, a new report has found.
The report by the Pensions Policy Institute, Care in later life: incentives to use assets to pay for care, which is sponsored by The Association of British Insurers (ABI), analyses five proposals to help people fund their care.
John Adams, Senior Policy Analyst at the PPI, said: “The diversity in people’s assets means that a single solution to this complex issue is unlikely to work for all. In developing a care funding framework, a wide range of options might need to be available, with the aim of enabling people to find the best solution for themselves. A properly functioning care funding solution is likely to need engagement of individuals, the state and financial providers. Raising awareness of this need to provide for care, is an issue that remains and requires further attention.”
This report considers a target group to be people who have savings and assets, excluding their house value, of more than the threshold for losing state support (£23,250), but less than £200,000.
The target group makes up approximately 37% of people in England aged over 50.
Commenting on the report, Stephen Lowe, group communications director at Just Group, said: “This is a timely intervention at a time when the ‘Middle Britain’ group who are most exposed in terms of their responsibility to meet any future care costs lack the practical solutions to help them deal with the risk. In this report, the PPI has examined some realistic options that could be put into place quite easily and make a difference more quickly.
“However great the ideas, they still need the government to show strong political leadership to turn ideas into practical options. Policymakers have known there is a need to reform the care system for years, if not decades. Despite all the talk there has been very little action and long-promised proposals still look months from being published and perhaps years from being enacted.”