Stephen Lowe, group communications director at retirement specialist, Just Group, comments on the Government’s social care reform announcement
Stephen Lowe, group communications director at Just Group, says:
“Almost six in 10 people (58%) aged 75 or older have been delaying making financial plans for care until the government got off the fence and said how it planned to fund long-term care. Today’s announcement is helpful for financial advisers and their clients. The detail needs to be examined but the fundamentals are at least now visible. The idea of a cap is popular, with 61% of over 45s supporting the idea.
“A cap of £86,000 is only a start when considering the total costs people will be expected to bear because it excludes the ‘hotel’ costs – such as accommodation and food. It could easily take perhaps three or four years and perhaps £200,000 to £400,000 of associated spending to reach the cap. So financial planning to avoid catastrophic loss of assets will continue to be a valuable service provided by financial advisers.
“Seven in 10 of over 45s who have had to organise care for a family member said they found the care system very complex and were shocked at how expensive care is. After today’s announcement, financial advisers will have an increasingly important role to play in helping people make sense of the system and plan for the costs of later life care.”
