Aegon is calling for all political parties to make their plans for social care funding clear as part of their manifestos.
The call comes as Aegon research shows only one quarter of working people have factored social care expenses into their retirement plans.
The provider also pointed out that the Conservative Party’s social care funding deal would have been introduced this month had it not been delayed.
The two-year delay announced last autumn means those paying for care now will have to wait two years before they benefit from the new deal, Aegon explained.
There is also the question over what could happen next as the deal will not come into force until after the next general election, which is expected in the next 12 months.
Steven Cameron, pensions director at Aegon, said as there was uncertainty it makes it hard for people to plan ahead.
“With each generation living longer on average, we’re increasingly likely to face this expense, which can have a huge impact on our later life finances,” he said.
“Recent research from Aegon for our Second 50 report showed that while declining physical health was one of the greatest concerns in later life, only 25 per cent of those surveyed had considered the cost of paying for social care.”
Cameron explained that, so far, the Liberal Democrats have said they would provide free care to all but this is likely to exclude ‘room and board’ costs which can be significant.
The Conservatives have been quiet on the topic since last autumn’s delay and Labour has not yet made its plans known.
“The new Conservative deal offered much needed clarity on how much individuals in England (the rules are different in Scotland) would be asked to pay for social care if needed in later life,” Cameron said.
“Importantly, the deal set a cap of £86,000 on how much an individual would be asked to pay for ‘eligible’ care costs, taking away the risk of those needing care over many years seeing their lifetime savings wiped out.
“Individuals would still pay for daily living costs and could also pay top-ups if they chose more expensive care facilities. A further change meant many individuals would qualify for means tested support sooner than under the current regime.”
He said these rules gave more clarity and would mean people could plan ahead with more certainty.
He added: “Financial advisers are well positioned to help people here as they navigate their later lives.
“We are urging all political parties to give this the attention it deserves and to come clean on future plans.”
amy.austin@ft.com
