PEOPLE in the UK expect their property will be the number one asset to cover the cost of their care,
PEOPLE in the UK expect their property will be the number one asset to cover the cost of their care, ahead of the state, pensions and savings, according to new research.
Care annuity provider Partnership revealed the results from its latest “Care Index”, an annual tracker of people’s attitudes towards the cost of long-term care in the UK.
Most people (52 per cent) in the 2012 survey believed the state would pay for some or all of their care. The sale of their home (31 per cent) only came after pension income (45 per cent) and savings (35 per cent) in that survey. However, the latest index has revealed a shift in attitudes, with residential property emerging as a key part of people’s plans for financing their care in later life.
In the new survey, the largest proportion (40 per cent) expressed the belief that they would sell their property to fund their long-term care, while a further nine per cent said they would rent out their property to enjoy an ongoing income stream.
Chris Horlick, managing director of Care at Partnership, said the rapid shift in public perception over the past year comes as no surprise. “As the debate around the reform of social care funding in England has grown, so too has the speed of change in attitude, as people’s belief in the state is replaced by reliance on their own means,” he said.
He added that property is an important factor for many “asset rich but income poor” people, as it is thought that people aged over 65 have £753 billion of unmortgaged equity in their property.
“This research also suggests that equity release may provide another valuable mechanism to enable people to access the equity in their property to cover their care fees,” he said. He added that it was critical for people to get appropriate regulated financial advice.