The cost of care is a top concern for a large number of over 55s who are planning to work beyond their state pension age, according to new research from Canada Life.
Of the 37% of over 55s who say they will work beyond their state pension age, 20% say this is due to concerns over the cost of long-term care – scoring within the top five factors of what those who are likely to work beyond their retirement age are concerned about.
With the average cost of a care home sitting at around £32,000 a year, and one in four people requiring some form of care into old age, worries continue about the financial implications, despite a cap on costs being introduced later this year.
Alice Watson, head of marketing communications, Canada Life UK, said: “Despite a cap on costs being introduced later this year, people are still concerned how they might be able to bridge the gap between their own financial position and the potential cost of care. This concern may be due to the personal experience of those who have worked within the current system with their relatives.
“It’s also worth remembering the cap on costs doesn’t include all the costs of care – for example it won’t include rent, food and utility bills. At the end of the day, people will need a holistic plan for potential costs and that’s where the equity stored in their property can play a crucial role alongside other financial assets.
“The area of long-term care is complicated and navigating the rules is challenging, so it’s always worth enlisting the help of a financial adviser who specialises in this area as well as chatting through any decision with family members. Engaging early can help to ease concerns and ensure your financial plans remain on track.”