The majority of UK adults are worried about being diagnosed with dementia and the costs of paying for social care in later life.
This is according to consumer research carried out by Opinium on behalf of Vitality, with 2,000 UK adults, which found that more than half of respondents said they were concerned about being diagnosed with dementia (55%), Alzheimer’s (54%) or becoming too frail to look after themselves (56%).
Concerns around funding care
Just 32% of people said they felt confident they could afford social care if needed in retirement, while half (49%) said they were not confident these were costs they could meet.
Seven in 10 respondents (71%) with adult children said they were concerned about the pressure such a diagnosis could place on their family.
Among those who lacked confidence that they could fund later life care, affordability and uncertainty were cited as key barriers. More than two fifths (43%) believed social care would be too expensive, even if they started saving now. A further 28% said they did not know how much care costs, while 24% admitted they had not thought about it, rising to 30% among those aged 18 to 34.
Traditional routes
When thinking about how they would fund care, planning was heavily focused on traditional routes. Over a third expected to rely on savings (36%), followed by pensions (28%) and the sale of property (15%). Only 6% expected an insurance policy to play a role, despite the recognition of later life risks. Notably, of those who do hold a protection policy, more than two fifths (44%) of people said they were unsure whether it would cover conditions such as dementia, Alzheimer’s or Parkinson’s.
Early conversations matter
Andy Philo, director of strategic partnerships at Vitality, (pictured) said: “For many people, concerns about later‑life care stem from uncertainty around cost and timing. Conditions such as dementia or increasing frailty often feel a long way off, and by the time people start actively thinking about what they might need in later life it can be too late to plan with confidence.
“That is why early conversations with adviser’s matter. As people live longer and survive conditions that would previously have been life threatening, it is important that the industry rethinks what relevant, long-term cover looks like.
“In 2018, we introduced dementia and Frailcare cover (DFCC) in recognition of this, allowing policyholders of our serious illness cover to automatically transition their cover to DFCC when the policy term ends.
“We want protection to adapt to people’s lives as they live them, continuing into later life without placing the burden of complex decisions on individuals years in advance.”