Only 5 per cent of people would speak to a financial adviser about ways to fund their later life care despite “serious” fears about the cost, research from Vitality Life has revealed.
This low interest in speaking with advisers comes despite 53 per cent of people saying they would be interested in an insurance policy that could cover these costs.
Additionally, almost three-quarters (74 per cent) of people said they will need some form of care in later life, while just 32 per cent said they are confident they could afford the associated costs.
On the other hand, 48 per cent said they believe care costs will be too expensive to afford.
VitalityLife managing director, Justin Taurog, 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.”
Taurog additionally warned that consumers expect “great value” from their policies, and that later life care is a “prime example” of where this value can come through.
“Conditions like 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,” he added.
When asked how they will pay for later life care costs 75 per cent expected more people will need the government to help in the future, despite 46 per cent saying government money available to provide this support will decrease.
Currently, people plan to use their savings (34 per cent), rely on their pension (25 per cent), or sell their home (16 per cent).
Additionally, of those interested in purchasing an insurance policy that supports later life care costs, those aged 18 to 34 were 50 per cent more likely to want this than those aged 55 and over.
The younger generation are also the most likely to speak to a financial adviser about later life care, with one in 10 18-34 year-olds saying they would speak to a financial adviser for guidance.
tom.dunstan@ft.com
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