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Research shows little awareness of true cost of long term care

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ElderlycareA study carried out by the Chartered Insurance Institute (CII) showed that the British public are uninformed about the cost of long term care and the need to make provision for it. The findings come in the wake of the recent Dilnot commission which made various suggestions for the reform of the present system of care funding.

Director of Policy and Public Affairs at the CII, David Thomson, commented “There is clearly a massive disconnect between public perception and reality. 80% of the public have no idea of how much their long-term care will cost and consequently are unlikely to be making any provision to meet that cost. Even more worrying is that 50% of the public think long-term care is entirely free at the point of use. The reality is starkly different. Our research shows MPs have very little appetite for a model that is fully funded by the state, over 50% preferring instead a partnership model similar to that outlined by the Dilnot Commission. Yet even with a model as outlined by the Dilnot Commission the funding deficit still remains significant, meaning people will have to consider using capital tied up in non-pension assets such as property.“

The current system dictates that individuals who have more than £23,000 in capital (including in many cases the value of their home) must pay the cost of their residential care in full. It has been estimated that the average annual cost of such care is around £26,000.


Written by Andrew Hodges

September 20, 2011 at 12:36 pm

Posted in Comment, LinkedIn

Tagged with , ,

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