A significant proportion of those approaching retirement over the next decade will discover the income that their state and private pension assets will generate in retirement will fall short of their expectations and needs. In addition, an estimated 1 in 4 adults now entering retirement will require care at the end of their lives. Due to the unpredictability of the type of care needed, very few people think about these major decisions until they are at the point of need. What will be the impact of the £75,000 cap on care costs? The role of independent financial advice will be key to ensure that all funding options available to individuals requiring care are considered. Providers and advisers must also start to look at their clients total mix of assets and liabilities to develop a long term decumulation plan to provide for daily living, and provisions for any potential care costs which could be considerable even with the 'capped cost' model.
Stephen Lowe, Group External Affairs & Customer Insight Director, Just Retirement
Nye Jones, Director of Business Development, Partnership
Toby Mynott, Head of PayingForCare