The latest announcement from the Government proposes a 1.25% increase to National Insurance to fund social care. PIMFA’s Tim Fassam shares his thoughts.
Tim Fassam, Director of Government Relations and Policy at PIMFA, comments:
“It is absolutely right that the Government seeks to address the ongoing crisis of social care funding in the UK. We believe that the proposals put forward today merit some further consideration; the more generous means test and cap on the amount people will have to contribute to their own care in old age are both welcome.
“However, the care system remains highly complex and may still lead to significant costs for individuals.
“Obviously, no proposal put forward will be perfect. Most people are reluctant to think about the final stages of their life and therefore put off planning for it. But the need to plan for social care is increasingly an issue that financial advisers and wealth managers are helping existing and new clients with and those that receive advice early are likely to find they are more comfortable in later life.
“The Government and the Regulator should recognise the unique role that the financial advice and wealth management industry are playing in addressing the UK’s care crisis. We would urge the Government and the Regulator to work closely with us and this industry to explore ways in which far more people can access financial advice in a cost-effective manner to help them prepare for the potential challenges of later life and safeguard their financial and mental wellbeing.”
