Fears of a “big gap” as a “concerning number” of over-60s want to utilize their state pension to pay for their care.
In the United Kingdom, pensioners may be required to utilize their state pension to cover the costs of long-term care.
According to new study from Canada Life, nearly 6 million over-60s want to utilize their state pension to pay for long-term care. Over a third (37%) of UK adults over the age of 60 say they would use the state pension, which is only £179.60 per week, to help pay for care.
This is a 16 percent rise from last year, when Canada Life asked the identical question, bringing the total to 6.3 million people.
A care facility is projected to cost between £600 and £800 per week on average.
This means that 6.3 million over-60s will need to find an extra £400 to £600 a week on top of their full UK state pension to afford care.
According to the study, unpredictability and a lack of planning are to blame for the financing shortfall.
Indeed, 40% of people over the age of 60 don’t know or haven’t planned how they would pay for their long-term care needs.
Cash savings are also being used by the over 60s to pay for care, with 35% indicating they would use it as a source of finance.
This represents a 20% increase over 2020, while 19% say they would use their private pension, up 11% from last year.
One-sixth of Britons (17%) say they haven’t considered this far ahead, and 15% expect the government to cover the price of their care needs.
According to the research, equity release is becoming a more popular method of paying for care.
In 2020, 8% of those over the age of 60 said they would transfer equity from their house to support care expenditures, up from 5% in 2020.
The data also show a greater awareness and comprehension of equity release and its applications; only 4% of respondents indicated they had no idea what equity release was.
The findings were discussed by Alice Watson, Head of Marketing, Insurance, Canada Life.
“As a society, we are still grappling with the problem of long-term care and who pays for it,” she said.
“Recent rumors claim that the government is considering raising national insurance to help support the NHS and pay for social care, but there is little doubt that there is a.”Brinkwire Summary News”.