The pandemic has put the issue of care homes and long-term care – often at the back of most people’s minds – firmly in the spotlight and yet many still fail to understand the financial implications of what happens in later life.
Research published by Aegon shows that social care “barely registers” as a planning or funding priority when it comes to retirement planning, with less than one in ten individuals (7%) polled by the financial services giant in the UK view putting money away to fund possible future social care needs as a priority.
Just 1% think of it as their single greatest financial priority.
Aegon’s global retirement study suggests that more people are worried about declining health (48%) than running out of money (42%). The need for assistance with basic activities, such as bathing, dressing and meal preparation, and the need to move into a nursing home (25%) register high on the list of retirement concerns.
The study suggests that most individuals think it is the government’s responsibility to look after them in later life. Two in five (38%) say they have not factored in care as a future expense because it will be provided by the NHS, while 31% simply have not considered it at all.
Steven Cameron, pensions director at Aegon said that many individuals face significant and “at times catastrophic” costs, wiping out their life savings, if they need to go into a care home.
He said: “While the issue of social care has been brought into sharp focus as a result of Covid, the research shows consideration of how to fund it is a worryingly low priority.
“It may be that too many people still believe that social care funding is an issue for the government to sort out. 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.”