New research from Vitality has revealed the significant number of UK adults deeply concerned about how they will afford care in later life, with many feeling unprepared and unsure of their options.
According to the findings, over half of adults (51%) lack confidence in their ability to meet the cost of social care in retirement. This figure rises to nearly two-thirds (61%) among those aged 55–64, highlighting growing insecurity among those approaching retirement. What’s more nearly half of adults (48%) believe that even if they started saving now, the cost of care would still be unaffordable.
When asked how they plan to fund any care they may need, responses varied, with a third (33%) planning to use their savings and a quarter (26%) relying on their pension. Some respondents, 16%, intend to sell their property to cover these costs, while 12% have taken out or plan to take out an insurance policy specifically for this purpose. A smaller, but not insignificant, 11%, believe the state will cover their care costs, and 10% expect their family to bear the financial burden.
Notably, 16% of respondents are unsure how they will manage any care expenses, and 17% have not thought about it at all. These findings highlight the uncertain and varied strategies people have for managing any future care costs, emphasising the importance of having early conversations with advisers to consider options available to them. Vitality’s Serious Illness Cover, with Dementia and FrailCare Cover included as standard, and offers advisers a compelling solution to introduce in early planning conversations, especially for clients concerned about age-related conditions.
Despite some expectation of government support, nearly half of people (45%) anticipate a reduction in government funding for later life care, with one in five (20%) predicting a dramatic decrease.
While nearly a third (32%) of adults express an interest in insurance policies that would help cover care costs in the event of a dementia or Alzheimer’s diagnosis, just 8% say they would speak to a financial adviser about their later life care. This disconnect highlights a critical opportunity, and responsibility, for advisers to proactively initiate these conversations, helping clients understand their options and plan with greater confidence.
Justin Taurog, CEO of VitalityLife, said: “Despite rising anxiety about how to fund care in later life, too few people are having the right conversations early enough. Advisers are uniquely positioned to bridge the gap between concern and action – helping clients think ahead, explore their options, and use protection as a practical tool to plan for future care needs.
Our Dementia and FrailCare Cover has been part of our Serious Illness Cover for some time now, and is automatically included when people take out a plan. As awareness grows around the need for long-term protection, it’s becoming a valued feature, allowing our members to extend their cover at the end of their Serious Illness Cover to protect against illnesses prevalent in later life, such as dementia, Parkinson’s and Alzheimer’s.”
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