Long-term care ‘to hit £33,000 per person by 2025’
The annual cost of long-term care for the elderly in the UK is set to spiral to an average of £33,000 per person, according to new figures.
A report from insurance provider LV showed that care costs will rise by 37 per cent by 2025, as the average life expectancy for UK residents continues to climb. As well as large cost increases, it is likely that improved life expectancies for both men and women will result in a further 1.1 million people depending on the care system.
Other factors cited for the rise in costs include women working later in life, when in the past they might have cared for relatives, and social migration, which has seen many families living further apart than they would have done previously.
Speaking to the Telegraph, head of equity release at LV Vanessa Owen said: “It is a real concern for people who have the burden of long-term care costs approaching, as currently they could be faced with an open-ended bill which makes it difficult to plan effectively to meet these costs.”
According to the LV survey, almost 25 per cent of UK adults expect that an elderly relative will need care at some point in the future, but less than one in ten said they planned to provide this personally. Despite this, only half have made any plans for how they are going to pay for long-term assistance from care homes and care
Current government legislation only provides support to those whose assets are worth less than £23,250, but with figures from the LV report showing that those aged 55 and over have an average cash pot of £32,500 – including savings, property without mortgage and investments – many could be left facing a struggle to fund care themselves.
A previous study from YouGov also highlighted the potential financial woes of a “sandwich” generation of people forced to fork out for the care of their parents, but also their own children. According to the survey, around 25 per cent of people aged between 45 and 60 provide support to their parents – and one in five are still supporting children living under their roof.
Managing director at Precision Claims Simon Thompson said: “We know that no-one enjoys thinking about their finances and making long-term money plans, but with Brits living longer and longer, it is essential for people to consider how they are going to fund the cost of their own care, and maybe the care of their elderly relatives too. Many people will also be unaware that they are entitled to government care, and are therefore putting themselves under unnecessary financial pressure.”
Precision Claims has a wealth of experience in dealing with care home claims for fees which should never have been paid. They can assist anyone who has paid for their own care, or the care of a relative, in a nursing home, in their own property or elsewhere. Claims can also be made on behalf of a deceased relative who paid for care during their life.
For more information about making a PPI claim visit the company’s website at http://www.precisionclaims.co.uk.
- Contact Information
- Simon Thompson
- Managing Director
- Precision Claims
- (44) 0844 704 1945
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