Local authorities have placed a charge on the properties of more than 19,000 retirees in the past five years to help meet the cost of their care, new figures have revealed.
The research, conducted by LV=, warns that the delay to the care cap by four years will put more people under pressure to cover future care costs. It found one in five retirees have sold their home to pay their care bill, and a quarter of adults with parents in care contribute to the cost.
The research also shows that the cost of care is now £75,000 per person, which is more than the average total pension pot. The increasing cost of care is also more likely to affect women who are twice as likely to go into a care home.
‘The UK is facing an uncertain future on the funding of long-term care, especially with the care cap being delayed,’ John Perks, managing director of LV= Retirement Solutions.
‘Although many of us leave the workplace in good health, as we are living longer with the average retirement now 17 years long, the likelihood of us needing residential or domiciliary care is increasing.
‘In addition, we are also seeing a rise in the length of time being spent in care. This highlights a very real need for many to consider a more flexible retirement income solution such as a fixed term annuity.’