Concern about how to pay for care in later life is widespread, with new research from Vitality highlighting anxiety around developing conditions such as dementia and Alzheimer’s, or increasing frailty, alongside low confidence in how care would be funded.
The research found that fears around later‑life health are high. More than half of respondents said they are concerned about being diagnosed with dementia (55%), Alzheimer’s (54%) or becoming too frail to look after themselves (56%).
Despite this, confidence in being able to meet care costs in later life remains limited. Only 32% of people say they feel confident they could afford social care if needed in retirement, while half (49%) say they are not confident these are costs they could meet, pointing to a significant gap between awareness and financial preparedness.
Worry about care extends beyond individuals themselves. Seven in ten respondents (71%) with adult children say they are concerned about the pressure such a diagnosis could place on their family, highlighting the emotional implications, alongside the practical ones, of later‑life care planning.
Among those who lack confidence they could fund later life care, affordability and uncertainty are key barriers. More than two fifths (43%) believe social care would be too expensive, even if they started saving now. A further 28% say they do not know how much care costs, while 24% admit they have not thought about it, rising to 30% amongst those aged 18–34, suggesting conversations around care often happen too late to effectively plan for.
When thinking about how they would fund care, planning remains heavily focused on traditional routes. Over a third expect to rely on savings (36%), followed by pensions (28%) and the sale of property (15%). Only 6% expected an insurance policy to play a role, despite the recognition of later life risks.
Notably, of those who do hold a protection policy, over two-fifths (44%) of people said they are unsure whether it would cover conditions such as dementia, Alzheimer’s or Parkinson’s, suggesting confusion around how different cover operates later in life.
Andy Philo, Director of Strategic Partnerships at Vitality, said: “For many people, concerns about later‑life care stem from uncertainty around cost and timing. Conditions such as dementia or increasing frailty often feel a long way off, and by the time people start actively thinking about what they might need in later life it can be too late to plan with confidence.
That is why early conversations with Adviser’s matter. As people live longer and survive conditions that would previously have been life threatening, it is important that the industry rethinks what relevant, long-term cover looks like.
In 2018, we introduced Dementia and Frailcare Cover (DFCC) in recognition of this, allowing policyholders of our Serious Illness Cover to automatically transition their cover to DFCC when the policy term ends. We want protection to adapt to people’s lives as they live them, continuing into later life without placing the burden of complex decisions on individuals years in advance.”
