Are 39% Concerned Over Pension Pain In Later Life Care Justified?
Two-fifths of adults in the East Midlands expect to see pensions used to fund care home fees – higher than any other UK region and 7% above the national average.
The findings come from a new YouGov poll, commissioned by Irwin Mitchell, into attitudes towards moving into care in later life. The survey also reveals 8% in the region think care homes are fully funded by government - also the highest of any region - while a further 59% are not saving for any future elderly care fees and don’t plan to.
The figures reveal a significant percentage of adults in the East Midlands are pessimistic about how later life care is funded. Money from certain pensions may not be counted in the means test currently, but delays to the government green paper on paying for social care has led experts at leading national law firm Irwin Mitchell to call for a wider debate on the issues.
Who funds care currently depends on many factors, from assets to whether needs are judged social or medical, yet many adults seem unaware of this.
When people in the East Midlands were asked where they would turn to for advice on a care home contract, 32% said a lawyer and 24% said a financial advisor, but a further 27% were split between those who don’t know or would not seek any advice at all.
Expert Opinion“With 39% expecting care to be funded from pensions and over half thinking homes will be sold to cover costs, you sense people’s pessimism. Figures also hide the heartbreak that can lie behind having no choice but to sell a family home that many wish to see remain in the family in order to fund care.
“Advice is the key step to planning for future eventualities and the 57% looking to pass on assets outside a will to reduce inheritance tax must factor care into their calculations. Five Leicestershire care homes were ordered to improve in March, suggesting this region is not immune from the care home crisis.
“This should incentivise taking responsibility for our own care plans, not just in terms of assets and tax, but concerning the standard of care we may receive in the future, based on ability to pay. Judging from these findings, people are not yet informed enough to be able to do that.
“People need a care pathway to see how they will fund later life care and without a wider regional and national conversation on the subject, many may have a bleaker old age to look forward to than might otherwise have been the case.” Gillian Coverley - National Head of Partnerships, Wills & Probate