Three out of five people who have taken money out of their pension savings have not planned for how they will meet future care costs, a new survey has revealed.
Research by Citizens Advice has found just 16% of people who used new pension freedoms to withdraw money from their retirement pot have budgeted for the care costs they may face as they grow older.
According to the survey, two-thirds of people without a plan in place are still employed full-time. One in ten of these people are hoping to rely on others such as the Government or family to help provide financial help for care in the future.
Citizens Advice is calling on local authorities to offer services that help people work out how they can pay for future care costs.
Gillian Guy, chief executive of Citizens Advice, said: ‘Getting the right guidance is key in helping people think about and plan how they will fund their retirement - including costs which are more tricky to consider, such as care fees.
‘There is also an opportunity for local authorities to help people plan ahead for future care costs, by providing clear information about how funding for care works and how much it costs.’