Public still in denial over cost of long-term care - Pensions - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Public still in denial over cost of long-term care

Public still in denial over cost of long-term care

Category: Pensions

Updated: 22/11/2011
First Published: 16/09/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The public continues to remain unaware of the real cost of long-term care and the necessity to make personal provision to meet the cost, it has been warned.

Despite the recent work of the Dilnot Commission, an independent body tasked by the Government with reviewing the funding system for care and support in England , the Chartered Insurance Institute (CII) said the public remains largely oblivious to the significant costs of long-term care.

With the current average long-term care bill amounting to £26,000 per annum and the average length of stay in a care home being two years, the average care bill comes to a grand total of £52,000.

But, as the CII points out, the current average pension provides an income of only £10,000 per annum, which leaves a huge annual deficit that would need to be filled.

When questioned, four in five people admitted to having no idea of how much their long-term care will cost, and are therefore assumed unlikely to make any provision to meet that cost.

But perhaps of even greater concern is the half of people who believe long-term care is entirely free at the point of use.

"There is clearly a massive disconnect between public perception and reality," said David Thomson, director of policy and public affairs at the CII.

"Our research shows MPs have very little appetite for a model that is fully funded by the state, with 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."

Find the best pension for you -Compare pensions.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Grandparents missing out on pension protection

Grandparents who give up work to take care of their grandchildren could be missing out on valuable state pension rights. So, if you're a grandparent taking care of a little one, make sure you’re building up all of the pension that you deserve.

Setting goals could boost your pension pot by £30K

Setting goals can be the key to success in many areas of life, helping motivate you to achieve anything from career progression to building up that house deposit - and if you have goals set for retirement, you could boost your pension by £30,000.

Pretend to be a time traveller day: Are you ready?

Today marks international ‘pretend to be a time traveller day’, a perfect occasion to look at what our lives might look like in 50 years’ time. Are you prepared for 2066?