Property now main source of care funding

Robyn Hall

April 19, 2013

The research found that in 2012 the highest percentage of people (52%) thought that the state would pay for some or all of their care followed by pension income (45%), savings (35%) and the sale of their home (31%).

Chris Horlick, managing director of Care at Partnership, said: “Last year we anticipated that property was likely to become a key source of funding for care.

“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.”

The index found that 40% of people now believe that they would sell their property (40%) to fund their long-term care and a further 9% would rent their property to give an on-going income.

Horlick said: “It is believed that people over the age of 65 have £753bn of un-mortgaged equity in their property.

“Accordingly property is an important source of value for people in retirement who are asset rich but income poor.

“It is critical that the majority of people (57%) who are currently paying some or all of their care costs and may plan to use their property to fund their care fees get appropriate regulated financial advice.”

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