A total of 53% of people would be interested in an insurance policy that could help cover the cost of healthcare in retirement, according to consumer research from Vitality.
But the research also found that only 5% would speak to a financial adviser about potential ways to fund care needs – despite serious fears about the cost of later-life care.
Vitality found that three-quarters (74%) of the UK believe they will need some form of care in later-life.
But a third (32%) are confident they could afford the associated costs on their own, with 48% believing care costs will be too expensive to afford. Research was conducted by Opinium among 2,000 UK adults in January 2024.
Younger people
Vitality said that of those interested in purchasing an insurance policy that supports later-life care costs, those aged 18 to 34 were 50% more likely to want this than those aged 55 and over.
But despite expressing an interest in such cover, the younger generation are also the least likely to speak to a financial adviser about later-life care, with only one in 10 saying they would speak to a financial adviser for guidance.
When asked how they will pay for later-life care costs 75% said they expect that more people will need the government to help with later-life care in the future, despite nearly half (46%) thinking the government money available to provide this support will decrease.
Currently, people plan to use their savings (34%), relying on their pension (25%), or selling their home (16%).
Vitality said that of those interested in purchasing an insurance policy that supports later-life care costs, those aged 18 to 34 were 50% more likely to want this than those aged 55 and over.
But despite expressing an interest in such cover, the younger generation are also the least likely to speak to a financial adviser about later-life care, with only one in 10 saying they would speak to a financial adviser for guidance.
Real concern
Justin Taurog, managing director VitalityLife, (pictured) said “There is clearly a real concern around the funding of later-life care, but the public doesn’t need to rely solely on their savings or look to sell their assets to support themselves.
“The adviser community is primed and ready to support people in developing a plan or putting protections in place for any later-life needs.
“This can be done through dementia and frail-care cover which is automatically included in our serious illness cover, or lifestyle care cover, available to take out with whole of life cover.
“These offerings aim to limit the financial sacrifices individuals and their families may have to make, while protecting the assets they have worked so hard for, such as their homes if they were to be diagnosed.
“Consumers expect greater value from their policies, and later-life care is a prime example of where this value can come through.
“Conditions like dementia, Alzheimer’s and Parkinson’s may not be life-threatening but they do threaten a person’s way and quality of life, as well as seriously impact their wider family.”