RetireEasy has been reviewing some research into Care finance undertaken by one of the UK’s newest annuity providers, Partnership Assurance.
Partnership’s Care Index compares attitudes towards the cost of long-term care across the UK on an annual basis and their latest index shows that property has overtaken the State, pensions and savings to become the most likely means of funding long-term residential care.
The Index showed that 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%). However, as care funding moves up the news agenda and consumer awareness grows, the largest proportion in 2013 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. Here are the responses to one of the questions put by Partnership:
If you went into residential care in the future, how do you think you would pay for all or part of it?
| Payment Method |
Total Percentage of respondents 2012 |
Total Percentage of respondents 2013 |
| The State |
52% |
37% |
| Pension income |
45% |
35% |
| Your Savings |
35% |
29% |
| Selling your home |
31% |
40% |
| Income from savings & investments |
24% |
22% |
| Renting home out |
10% |
9% |
It is estimated that £750 billion of un-mortgaged equity is locked-in the residential property of the over 65s, yet in many instances the same property owners are income poor. This had led to a huge growth in equity-release plans and it is essential for anyone considering such a plan to seek the appropriate regulated advice.
