Fear causing people to ignore care costs
Tony Mudd, divisional director at St. James’s Place, said: “As a nation, we’re taking a gamble as we get older. Many of us remain oblivious to, or are in denial about, the financial and emotional problems that old age can bring.
“Too many people are putting off thinking about their care options. Fear is driving a collective head in the sand mentality. Addressing the subject of old age with family members, of the perceived cost of care provision, or of losing control of our independence is intimidating for many.”
Research from Age UK showed that currently, if clients have assets of more than £23,250 they will need to pay the full cost of care. People’s homes won’t be included in this if a partner or close relative still lives there though income is also taken into account.
Mudd added: “People worry that talking about a situation makes it immediate and real but the emotional benefits of talking far outweigh the alternatives. It’s much easier to talk about life-changing decisions when you’re not faced with an immediate crisis and talking earlier means you are more likely to be prepared in the long run.”
From April 2016 there will be a care cap. This means no-one will spend more than £72,000 of their own money on their care needs.